danieldyer707
Expert
- 21
I am stuck on this practice exam question. I understand the question and I understand the answer, but I don't understand which choice is best for that answer. This involves the California State Life and Health. So here it goes.
Which of the following defines the term paid-in capital?
A. The greater of the value of the company’s assets in excess of its liabilities or the aggregate par value of its issued shares of stock
B. The value of company’s assets in excess of the sum of its liabilities for losses
C. The aggregate par value of the company’s issued shares of stock
D. The lower of the value of the company’s assets in excess of its liabilities or the aggregate par value of its issued shares of stock
Answer:
The term “pain-in capital” means the lesser of the following amounts: the value of the company’s assets in excess of its liabilities or the aggregate (combined total) par value of its issued shares of stock.
If you have any understanding in this, it would help out a lot. I googled it online, and it is even more confusing. Thank you.
Which of the following defines the term paid-in capital?
A. The greater of the value of the company’s assets in excess of its liabilities or the aggregate par value of its issued shares of stock
B. The value of company’s assets in excess of the sum of its liabilities for losses
C. The aggregate par value of the company’s issued shares of stock
D. The lower of the value of the company’s assets in excess of its liabilities or the aggregate par value of its issued shares of stock
Answer:
The term “pain-in capital” means the lesser of the following amounts: the value of the company’s assets in excess of its liabilities or the aggregate (combined total) par value of its issued shares of stock.
If you have any understanding in this, it would help out a lot. I googled it online, and it is even more confusing. Thank you.