When the Common Stock account is disclosed on the balance sheet,it is reported at:

Question

Quizplus · Accepted Answer

Common Stock is reported at par or stated value on the balance sheet. This is because the par value represents the minimum price at which shares can be sold and is often used to calculate legal capital requirements. The market value and average issue price may be useful information, but they are not relevant for reporting the Common Stock account on the balance sheet. The lower of cost or market rule is usually applied to inventory, not stockholder’s equity accounts.

When the Common Stock Account Is Disclosed on the Balance