If Shares Are Issued for a Non-Cash Asset, the Asset

question 237

Multiple Choice

If shares are issued for a non-cash asset, the asset should be recorded on the books of the corporation at

• A) fair value.
• B) cost.
• C) zero.
• D) a nominal amount.

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Definitions:

Intentions

The plans or desires that one has in mind to carry out an action.

Consequentialists

Ethical theorists who believe that the morality of an action is determined solely by its consequences.

Pleasure

A sense of satisfaction or happiness experienced through enjoyable activities or sensations, often regarded as a key component of human well-being.

Utilitarian

Pertains to the ethical doctrine that actions are right if they are useful or for the benefit of a majority.