When a Corporation Issues Its Capital Stock in Payment for Services

question 50

Multiple Choice

When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction is the

• A) market value of the services received.
• B) par value of the shares issued.
• C) market value of the shares issued.
• D) Any of these provides an appropriate basis for recording the transaction.

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Definitions:

IFRS

The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

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The ability of an organization to adapt its financial resources to handle unforeseen challenges and opportunities effectively.

Credit Risk Indicator

A metric or score used to evaluate the likelihood of a debtor defaulting on a loan or credit agreement.

Stock Price Predictor

A tool or model used to forecast the future prices of stocks based on historical data, market trends, and other factors.