A company credits Additional Paid-in Capital for the portion of the cash proceeds above par value received for the issuance of stock.

Name: A company credits Additional Paid-in Capital for the portion of the cash proceeds above par value received for the issuance of stock.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

This is true. Additional Paid-in Capital represents the amount paid by investors for the stock that exceeds the stock's par value. This account is typically used to record the excess cash received when issuing stock.

A Company Credits Additional Paid-In Capital for the Portion of the Cash