Which of the following statements,regarding no-par stock,is incorrect?
A) Regardless of the stock's issue price, Cash is debited and Common Stock is credited for the cash received.
B) There can be no Paid-In Capital in Excess of Par.
C) There is no par to be in excess of.
D) All of the statements are correct.

Question

Quizplus · Accepted Answer

All of the statements regarding no-par stock are correct. No-par stock has no designated or stated par value, and therefore there cannot be any Paid-In Capital in Excess of Par. Regardless of the issue price, the common stock is credited, and cash is debited when the stock is issued.

Which of the Following Statements,regarding No-Par Stock,is Incorrect