Which of the Following Journal Entries Shows the Correct Accounting

question 21

Multiple Choice

Which of the following journal entries shows the correct accounting treatment for share issue costs?

• A) Dr Deferred asset: Cr Cash
• B) Dr Cash: Cr Deferred asset
• C) Dr Share capital: Cr: Cash
• D) Dr Cash: Cr Share capital

---

Definitions:

Regression Analysis

A statistical method used to estimate the relationships among variables, often for the purpose of forecasting future trends or assessing cause and effect.

Adjustment Technique

Methods or procedures used to modify data, processes, or systems in order to correct errors or enhance functionality.

Mean-Variance Efficient Portfolio

An investment portfolio optimized for the highest expected return for a given level of risk, based on modern portfolio theory.

Covariances

A measure of how two securities move in relation to each other, indicating the degree to which their returns are interconnected.