Companies should record stock issued for services or noncash property at either the fair value of the stock issued or the fair value of the consideration received, whichever is more clearly determinable.

Question

Quizplus · Accepted Answer

This statement is true according to generally accepted accounting principles (GAAP) in the United States. Companies should record stock issued for services or noncash property at either the fair value of the stock issued or the fair value of the consideration received, whichever is more clearly determinable. This helps ensure that financial statements accurately reflect the economic substance of the transaction.

Companies Should Record Stock Issued for Services or Noncash Property