Which of the following is not classified as paid-in capital on the balance sheet?
A) common stock
B) common stock distributable
C) donated capital
D) treasury stock

Question

Quizplus · Accepted Answer

Paid-in capital refers to the amount of capital that has been contributed by the shareholders in exchange for shares of stock. Common stock, common stock distributable, and donated capital are all examples of paid-in capital. Treasury stock, on the other hand, represents shares of stock that have been repurchased by the company and are held in its treasury. Treasury stock is deducted from the total amount of paid-in capital on the balance sheet, as it represents a reduction in the amount of capital contributed by shareholders. Therefore, choice D, treasury stock, is not classified as paid-in capital on the balance sheet.

Which of the Following Is Not Classified as Paid-In Capital