What does APIC stand for in accounting?

• A. Additional Paid-In Capital
• B. Accounts Payable In Corporate
• C. Asset Purchase Incentive Credit
• D. Annual Pension Investment Capital

Answer: (A)

APIC stands for Additional Paid-In Capital. It captures the amount investors pay for shares above their stated par value. On the balance sheet, common stock is recorded at par value, while the excess over par is posted to APIC, reflecting contributed capital from shareholders. For example, if the par value is $1 and a share sells for $10, $1 goes to common stock and $9 goes to APIC. This item is part of shareholders’ equity, not a liability or revenue.

The other terms aren’t standard accounting labels for APIC: accounts payable is a liability, not equity; and the phrases Asset Purchase Incentive Credit and Annual Pension Investment Capital aren’t recognized concepts for APIC.