What does additional paid-in capital mean on the CPA exam?
Additional paid-in capital. Amounts received from shareholders above the par or stated value of the shares issued, reported as a separate equity caption. It absorbs the difference on treasury stock transactions and other equity events that never touch the income statement. US GAAP carries no glossary definition of the term.
Defined against ASC 505-30-30-10; Reg S-X 5-02.30.
Which CPA exam sections use additional paid-in capital?
Additional paid-in capital appears in the FAR section of the CPA exam.
Other terms defined against ASC 505-30
- treasury stock: A company's own shares reacquired and not retired.
Other names for additional paid-in capital
APIC, paid-in capital in excess of par
Related terms
- income statement: The statement of what was earned and spent over a period, ending in net income.
- working capital: Current assets less current liabilities.
- temporary difference: A difference between the tax basis of an asset or liability and its reported amount that will produce taxable or deductible amounts in future years.
- capital gain net income: Capital gains minus capital losses for the year, long-term and short-term combined.
- cash basis: Recognizing revenue when cash is received and expense when cash is paid.
- capital loss: Loss on the sale of a capital asset.