Paid-in capital, as shown on a corporate balance sheet, includes the stock accounts and any additional paid-in capital.

Question

Quizplus · Accepted Answer

This is true. Paid-in capital includes the original investment in the company, as well as any additional amount paid above the stock's par value, such as through the sale of treasury stock or the issuance of preferred stock. Paid-in capital is shown separately from retained earnings on a balance sheet as a way to track the sources of financing for the corporation.

Paid-In Capital, as Shown on a Corporate Balance Sheet, Includes