The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is:

Question

Quizplus · Accepted Answer

The term used to describe the total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is paid-in capital. Retained earnings are profits that are kept by the company for its own use rather than being distributed to stockholders. Stated value and par value are both accounting terms for the value assigned to a share of stock, but they do not necessarily represent the actual amount paid by stockholders. Option E is incorrect because there is no requirement that the amount paid for stock be below its stated or actual value.

The Total Amount of Cash and Other Assets Received by a Corporation