When the common stock account is disclosed on the balance sheet, it is reported at:

Question

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The common stock account is reported at its par or stated value on the balance sheet. This is because the par value represents the minimum price at which a company can issue its stock, and therefore it provides a clear indication of the amount of capital that has been contributed by shareholders. Reporting common stock at current market value or average issue price would not be appropriate since these values can change over time and may not accurately reflect the amount of capital that has been contributed by shareholders. Reporting common stock at lower of cost or market is not applicable to common stock since it is not an inventory item.

When the Common Stock Account Is Disclosed on the Balance