The Entry to Record the Issuance of Ordinary Share at a Price

question 139

Multiple Choice

The entry to record the issuance of ordinary share at a price above its par value includes:

• A) A credit to Cash.
• B) A credit to a liability account for the difference between the price paid by the shareholders and the par value of the share.
• C) A credit to Share Premium: Ordinary Share.
• D) A debit to Ordinary Share.

Explore strategies for managing power dynamics in social exchanges.

Conceptualize the role differentiation within groups and its significance.

Understand the role and impact of reciprocal exchanges in building trust within personal relationships.

Comprehend the dynamics and stability of status hierarchies within groups.

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Definitions:

Inventory Period

The amount of time it takes for a company to sell through its current stock of inventory.

Accounts Receivable Period

The average number of days that it takes a company to collect payments after a sale has been made, a critical component of managing cash flow.

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers and vendors.

Inventory Period

The average time it takes for a company to convert its inventory into sales or the duration of the inventory cycle.