ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
From the web's #1 provider of financial analysis / ratio analysis
PREMIUM ON CAPITAL STOCK Definition
PREMIUM ON CAPITAL STOCK is excess received over the par value of stock issued. The premium account is shown under the paid-in capital section of stockholders equity because it resulted from the issuance of stock. It is not an income statement account since the company earns profit by selling goods and services to outsiders, not by issuing shares of stock to owners.
Learn new Accounting Terms
SOLVENCY is a companys long-term ability to meet all financial obligations.
FAF is Financial Accounting Foundation or Financial Aid Form.