Question

Which of the following best represents the guidance provided by ASPE when accounting for shares issued...

Which of the following best represents the guidance provided by ASPE when accounting for shares issued for non-cash consideration?

Question 2 options:

The transaction should be valued at the more reliably measurable amount of the fair value of the goods/services received or the fair value of the shares given up

The transaction should be valued at the fair value of the shares given up

The transaction should be valued at the fair value of the goods/services received

The transaction can be valued at management’s choice of either the fair value of the goods/services received or the fair value of the shares given up

Question 3 (1 point)

Authorized shares that have been sold are:

Question 3 options:

Released

Preferred

Reacquired shares

Issued

Question 4 (1 point)

A company issues 5,000 common shares to its lawyers in settlement of their bill for $25,000. The shares are currently trading at $6 per share. The entry to record this transaction will credit common shares for:

Question 4 options:

$125,000

$30,000

$25,000

d) $5,000

Question 6 (1 point)

A common stock dividend results in a decrease in retained earnings and an increase in common shares at

Question 6 options:

the average cost of the share issued

the fair value of shares issued at the declaration date

the fair value of shares issued at the distribution date

the weighted average cost of the shares issues
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