The common stock account in a company's balance sheet is measured as:
A)The number of common shares outstanding multiplied by the stock's par value per share.
B)The number of common shares outstanding multiplied by the stock's current market value per share.
C)The number of common shares issued multiplied by the stock's par value per share.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The common stock account in a company's balance sheet is measured as the number of common shares issued (not outstanding) multiplied by the stock's par value per share. The par value is usually a nominal value assigned to each share by the company at the time of issuance. The market value of the stock is not relevant for the common stock account in the balance sheet.

The Common Stock Account in a Company's Balance Sheet Is