Additional Paid in Capital on the balance sheet equals the amount paid by investors for the company's common stock that exceeds the market price of the stock at the time of purchase.

Question

Quizplus · Accepted Answer

Additional Paid in Capital (APIC) represents the amount paid by investors over and above the par value of the stock, not the market price. The market price is what investors pay to buy the stock on the open market, which can be more or less than the sum of the par value and APIC.

Additional Paid in Capital on the Balance Sheet Equals the Amount