When Ordinary Shares Are Issued for Services or Non-Cash Assets

question 29

Multiple Choice

When ordinary shares are issued for services or non-cash assets, cost should be

• A) only the fair value of the consideration given up.
• B) only the fair value of the consideration received.
• C) the book value of the ordinary shares issued.
• D) either the fair value of the consideration given up or the consideration received, whichever is more clearly evident.

Understand the mechanisms of reinforcement and punishment in behavior modification.

Distinguish between positive and negative reinforcement, and how they influence behavior.

Identify and differentiate between the various schedules of reinforcement and their effects on behavior.

Recognize the role of avoidance and escape learning in behavior modification.

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Definitions:

FIFO Method

FIFO method, or First-In, First-Out, is an inventory costing method where the first items placed into inventory are the first ones sold, used for calculating cost of goods sold and ending inventory.

Cost of Goods Sold

Cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Periodic System

An inventory system in which the inventory level is updated and cost of goods sold is calculated at the end of an accounting period.

Perpetual Inventory

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.