Paid-in capital in excess of par is reported:
A) As a reduction of shareholders' equity.
B) As a noncurrent asset.
C) As a noncurrent liability.
D) As an increase in shareholders' equity.

Question

Quizplus · Accepted Answer

Paid-in capital in excess of par represents the amount shareholders paid for their shares that exceeds the par or stated value. This amount is recorded as an increase in shareholders' equity on the balance sheet. Therefore, the correct choice is D.

Paid-In Capital in Excess of Par Is Reported