"Common Shares Subscribed" Is Credited in Recording a Common Share

question 5

True/False

"Common shares subscribed" is credited in recording a common share subscription contract because the shares are usually issued at the time the contract is signed.

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Definitions:

Representational Faithfulness

A concept in accounting that assets and transactions are recorded and reported in a manner that accurately reflects economic reality.

Accounting Measurements

The process of quantifying financial information in dollars or units to report financial position and performance.

Revenue Recognition

The accounting principle that deals with the conditions under which revenue is recognized and recorded on the financial statements.

Installment Method

An accounting method used to recognize revenue and expenses on long-term contracts and other sales where payment is received in installments.