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: O Not recorded separately. O Recorded as an asset. O Amortized over time. O Recorded as a liability.
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: O Not recorded separately. O Recorded as an asset. O Amortized over time. O Recorded as a liability.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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:
O Not recorded separately.
Recorded as an asset.
O Amortized over time.
O Recorded as a liability.
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