The authorization of share capital does not result in a formal accounting entry.

Name: The authorization of share capital does not result in a formal accounting entry.
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Quizplus · Accepted Answer

The authorization of share capital is merely a legal process that allows a corporation to issue a certain number of shares; it does not involve any actual issuance of shares or movement of funds, and therefore, does not result in a formal accounting entry until shares are actually issued.

The Authorization of Share Capital Does Not Result in a Formal