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Questions and Answers
What does capital surplus represent on a corporation's balance sheet?
What does capital surplus represent on a corporation's balance sheet?
- Amount raised on the issue of shares in excess of their par value (correct)
- Dividends paid to shareholders
- Retained earnings of the corporation
- Total assets of the corporation
In US GAAP terminology, what is the equivalent term for 'share premium'?
In US GAAP terminology, what is the equivalent term for 'share premium'?
- Dividend yield
- Additional paid in capital (correct)
- Common stock
- Retained earnings
What does 'additional paid in capital' include, according to the text?
What does 'additional paid in capital' include, according to the text?
- Tax related and conversion related adjustments (correct)
- Retained earnings from previous years
- Dividend payments to shareholders
- Operating expenses of the corporation
When will shares with no par value generally not have any form of capital surplus on the balance sheet?
When will shares with no par value generally not have any form of capital surplus on the balance sheet?
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What triggers a capital surplus on a corporation's balance sheet?
What triggers a capital surplus on a corporation's balance sheet?
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