Share Issue Costs Refer to the Costs of Obtaining the Legal

question 15

Multiple Choice

Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services necessary to effect the sale of shares. The costs reduce the net cash proceeds from selling the shares and thus paid-in capital - excess of par, and are:

• A)not recorded separately.
• B)recorded as an asset.
• C)recorded as a liability.
• D)amortized over time.

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Definitions:

Harmful Indirect

Referring to unintentional negative effects on the environment or health that are not a direct result of an action but occur as secondary consequences.

Goods

Items or products that are manufactured or produced for sale and consumption by consumers.

Costs

The value of resources used for producing goods or services, or the expenditure incurred in achieving a particular purpose.

Environmentally Harmful

Describes actions or processes that negatively affect the environment, leading to damage or degradation of natural resources.