Capital stock represents:
A)The amount invested in the business by stockholders when shares of stock were initially issued by a corporation.
B)The owners' equity for a business organized as a corporation.
C)The owners' equity accumulated through profitable operations that have not been paid out as dividends.
D)The price paid by the current owners to acquire shares of stock in the corporation,regardless of whether they bought the shares directly from the corporation or from another stockholder.

Question

Quizplus · Accepted Answer

Capital stock represents the amount invested in the business by stockholders when shares of stock were initially issued by a corporation. This is the initial contribution of funds from the investors and is recorded in the balance sheet as a part of the owner's equity.

Capital Stock Represents