Companies that have true no-par stock have no additional paid-in capital account.

Name: Companies that have true no-par stock have no additional paid-in capital account.
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

True no-par stock means that the stock has no assigned par value, and therefore there is no need for an additional paid-in capital account. The total amount received from the sale of the stock is simply recorded as a credit to the common stock account.

Companies That Have True No-Par Stock Have No Additional Paid-In