BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The portion of called-up capital for which the shareholders made payment is called ____
A
Paid-down Capital
B
Subscribed Capital
C
Paid-up Capital
D
Called-up Capital
Explanation: 

Detailed explanation-1: -Also called paid-in capital, equity capital, or contributed capital, paid-up capital is simply the total amount of money shareholders have paid for shares at the initial issuance. It does not include any amount that investors later pay to purchase shares on the open market.

Detailed explanation-2: -Key Takeaways The amount of share capital shareholders owe, but have not paid, is referred to as called-up capital. Any amount of money that has already been paid by investors in exchange for shares of stock is paid-up capital.

Detailed explanation-3: -Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock.

Detailed explanation-4: -Paid-up share capital is the amount of money a company has spent on its common stock. Authorized capital is the amount of money a company has the right to spend on its common stock. The distinction between the two becomes essential when analyzing financial statements and comparing companies’ capitalization ratios.

There is 1 question to complete.