Capital surplus is the portion of a company's equity that is in excess of the par value of its common stock. Capital surplus can arise from the sale of stock at a price above par, the issuance of stock at a price below par, or the conversion of convertible securities into common stock. Capital surplus can also be created when a company repurchases its own stock at a price above the stock's par value.
What are the 4 types of capital? -Human capital: This refers to the skills and knowledge that people have that can be used in productive activities. This includes things like education, training, and experience.
-Physical capital: This refers to the machines, buildings, and other physical objects that are used in production.
-Financial capital: This refers to the money that is available to be invested in businesses and other ventures.
-Social capital: This refers to the networks of relationships that people have with each other. This can include things like family ties, friendships, and memberships in organizations.
Is capital surplus the same as retained earnings? No, capital surplus is not the same as retained earnings. Capital surplus is the portion of a company's stockholders' equity that represents the excess of the par value of the company's common stock over the amount of capital paid in by the stockholders. Retained earnings, on the other hand, is the portion of a company's stockholders' equity that represents the earnings that the company has reinvested back into the business. What is capital stock also known as? Capital stock is also known as common stock or equity. It represents the ownership of a corporation and gives the holder a claim on the corporation's assets and profits. What are synonyms for surplus? There are many synonyms for surplus, depending on the context in which it is used. For example, if surplus is used to describe a surplus of goods or materials, then some synonyms might be abundance, overabundance, or excess. If surplus is used to describe a surplus of money or funds, then some synonyms might be extras, leftovers, or reserves. What is capital stock classified as in accounting? In accounting, capital stock is classified as a long-term investment on the balance sheet. This is because the capital stock represents the ownership interest that the shareholders have in the company. The capital stock is also a source of financing for the company, as it represents the money that has been invested into the company by the shareholders.