When the Common Stock account is disclosed on the balance sheet, it is reported at the ________ of the common stock.

Question

Quizplus · Accepted Answer

Common Stock is reported at its par or stated value on the balance sheet to accurately reflect the amount invested by the shareholders in the company. The current market value, most recent issue price, and lower of cost or market are not relevant for reporting the Common Stock account on the balance sheet.

When the Common Stock Account Is Disclosed on the Balance