Assets other than cash should be recorded at their current fair market value when received from the issuance of stock.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), assets received from the issuance of stock should be recorded at their fair market value at the time of the transaction. This is because the stock represents ownership in the company and its value should reflect the value of the assets received in exchange.

Assets Other Than Cash Should Be Recorded at Their Current