The Common Stock account on a company's balance sheet is measured as:

Question

Quizplus · Accepted Answer

Common stock is typically recorded at its par value, which is the nominal value assigned to each share of stock when it is issued. Therefore, the Common Stock account is measured as the number of common shares issued multiplied by the stock's par value per share. Option A is incorrect because it only takes into account the common shares outstanding, not the number of shares issued. Option B is incorrect because it uses the stock's current market value per share, which is not the basis for measuring the Common Stock account.

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