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When Stock Is Issued for Noncash Assets or Services,how Does

question 95

Essay

When stock is issued for noncash assets or services,how does one place a valuation (dollar amount)on the transaction?


Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing its current assets to its current liabilities.

Net Working Capital Turnover

A measure of how effectively a company is using its working capital (current assets minus current liabilities) to generate sales.

Total Fixed Assets

The total value of all long-term, tangible assets held by a company for use in production but not for resale.

Long-Term Liabilities

Obligations due to be paid or settled beyond one year, including loans, bonds, lease obligations, and pension obligations.

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