When stock is sold, the total paid-in capital should equal the amount of cash received.

Name: When stock is sold, the total paid-in capital should equal the amount of cash received.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When stock is sold, the total paid-in capital should equal the amount of cash received because paid-in capital represents the amount of money investors have contributed to the company through the purchase of stock. When stock is sold, the cash received from the sale should be equal to the amount of paid-in capital.

When Stock Is Sold, the Total Paid-In Capital Should Equal