As Soon as a Corporation Is Authorized to Issue Shares

question 70

True/False

As soon as a corporation is authorized to issue shares, an accounting journal entry should be made recording the total value of the shares authorized.

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Definitions:

Discount Rate

In finance, the interest rate used to determine the present value of future cash flows, or in central banking, the rate charged to commercial banks for loans from the central bank.

Present Value

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Cash Flows

The total amount of money being transferred into and out of a business, project, or financial product, often analyzed to assess the entity's liquidity, solvency, and financial viability.

Dissolved

The process of formally ending the existence of a business, partnership, or corporation.