1. A net loss

is closed to Retained Earnings even if it would result in a debit balance.

is closed to the Paid-in Capital account of the stockholders' equity section of the balance sheet.

occurs if operating expenses exceed cost of goods sold.

is not closed to Retained Earnings if it would result in a debit balance

2.Multiple Choice Question 125

On January 1, Splish Brothers Inc. had 820000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $15/share. As a result of this event,

Splish's Paid-in Capital in Excess of Par Value account increased $410000.

Splish's total stockholders' equity was unaffected.

Splish's Stock Dividends account increased $1230000.

All of these answer choices are correct.

3Multiple Choice Question 88

The Paid-in Capital in Excess of Par Value is increased in the accounting records when

the number of shares issued exceeds par value.

the stated value of capital stock is greater than the par value.

the market value of the stock rises above par value.

capital stock is issued at an amount greater than par value.