The accounting problem in a lump sum issuance is the allocation of proceeds between the classes of securities.An acceptable method of allocation is the
A)pro forma method.
B)proportional method.
C)incremental method.
D)either the proportional method or the incremental method.

Question

Quizplus · Accepted Answer

The allocation of proceeds between classes of securities in a lump sum issuance can be done using either the proportional method or the incremental method, both of which are acceptable accounting methods.

The Accounting Problem in a Lump Sum Issuance Is the Allocation