Par value is the minimum amount that can be reported as retained earnings.

Question

Quizplus · Accepted Answer

Par value refers to the nominal or face value of a share, and it has nothing to do with retained earnings, which represent the portion of net income that has not been distributed to shareholders as dividends. There is no minimum or maximum amount for retained earnings, as they can accumulate or decrease depending on the company's profitability and dividend policy.

Par Value Is the Minimum Amount That Can Be Reported