Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services necessary to effect the sale of shares. The costs reduce the net cash proceeds from selling the shares and thus paid-in capital - excess of par, and are:
A)not recorded separately.
B)recorded as an asset.
C)recorded as a liability.
D)amortized over time.

Question

Quizplus · Accepted Answer

Share issue costs are not recorded separately; they are deducted from the paid-in capital - excess of par, reducing the net cash proceeds from the sale of shares.

Share Issue Costs Refer to the Costs of Obtaining the Legal