Many firms disaggregate the initial amounts they received from shareholders for common shares into the _____ and the amounts received in excess of this value, called additional paid-in capital (APIC), share premium, or capital contributed in excess of par value.
A)par value of the shares
B)nominal value of the shares
C)stated value of the shares
D)Choices a, b, and c are correct.
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Companies disaggregate the initial amounts they received from shareholders for common shares into the par value, nominal value, or stated value of the shares and the amounts received in excess of this value, called additional paid-in capital (APIC), share premium, or capital contributed in excess of par value. Choice D reflects all three options, making it the best answer.

Many Firms Disaggregate the Initial Amounts They Received from Shareholders