Which of the following actions could increase the balance in the Paid-in capital in excess of par account?

Question

Quizplus · Accepted Answer

A stock dividend increases the number of shares outstanding, but does not affect the overall value of the company. Since the par value remains the same, the amount paid in excess of par for each share also increases, which in turn increases the balance in the Paid-in capital in excess of par account.

Which of the Following Actions Could Increase the Balance in the Paid-In