A company can sell common stock in exchange for assets other than cash.

Name: A company can sell common stock in exchange for assets other than cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A company can indeed issue common stock in exchange for assets other than cash, such as property, equipment, or intellectual property. This type of transaction is known as a non-cash or in-kind transaction. However, the value of the assets must be determined and disclosed in the financial statements.

A Company Can Sell Common Stock in Exchange for Assets