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Which of the Following Is Not True Regarding Stock Rights

Question 155

Multiple Choice

Which of the following is not true regarding stock rights?


A) U.S.GAAP does not require recognition of the rights on the date of the grant.
B) The granting of stock rights to current shareholders requires several accounting entries.
C) Shareholders may exercise the stock rights or sell them to others.
D) IFRS does not require recognition of the rights on the date of the grant.
E) When holders exercise the stock rights, the firm records the issue of shares at the price paid just as it records the issue of new shares for cash.

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