Question

Stock is almost always sold to investors at a price that exceeds the par value. this additional amount over par is recorded on the company's books as blank or blank .

multiple select question.
a. additional paid-in capital
b. additional funds raised
c. premium capital
d. capital surplus
e. excess over par raised

Answer 1

The additional amount over par value of stock is recorded as additional paid-in capital or capital surplus on the company's books.A is the correct option.

Step-by-step explanation:

When stock is sold to investors at a price that exceeds the par value, the additional amount over par is recorded on the company's books as additional paid-in capital or capital surplus.

These accounting terms represent the extra money a company raises from issuing shares above their nominal value

It is important to note that this is distinct from the concepts of dividends and capital gains, which are forms of return on investment for shareholders.