Paid-in capital in excess of par represents the proceeds in excess of par value received from the original sale of common stock.

Question

Quizplus · Accepted Answer

Paid-in capital in excess of par is the amount of money that investors pay for shares that exceed the par or stated value of the stock. It represents the surplus funds that a company receives when shares are issued above their par value. Therefore, it is true that paid-in capital in excess of par represents the proceeds in excess of par value received from the original sale of common stock.

Paid-In Capital in Excess of Par Represents the Proceeds in Excess