UCBUGBA102ATopic08PracticeQuestionsSolns - Topic08...

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Topic08 Stockholders’ Equity & Long-Term Investments Question 1. In a short sentence, define the following terms: a. Paid-in Capital in Excess of Par represents the amounts paid by investors to acquire shares of stock from the company in excess of par (or stated) value. b. Treasury Stock represents amounts paid by the company to repurchase outstanding shares of the company’s stock. c. Book Value of Stock represents the total stockholders’ equity of the company divided by the shares outstanding. d. Passive Investments in Stock represent either short-term or long-term investments in the stock of other companies for which there is little or no influence by the investor. e. Minority Interest represents the portion that is less than 50% of the voting stock of a subsidiary company that is owned by a stockholder (or stockholders) other than the parent company. UGBA102A Topic08 Practice Questions 1
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Question 2. In a short sentence, explain the difference between the following concepts:
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