Question

A company is issuing 4 million dollars in shares. The cost associated with the issuing of these shares is an example of:

a) EBITDA

b) depreciation

c) amortization

d) accrued wages

Answer 1

Given that a company issues million dollar in shares.

The cost associated in issuing these sared is an example of Amortization

Explanation:- the cost for issuing shares can be treated in various methods.

For example, they can be offeseted to share capitla a/c, or they can be considered as retained earnings/ or they can be amortized over time perios (which is often refered as Deffered charge method).

so , of the given options, Amortization is the right answer.