Why is valuation of most stock issuances usually considered to be relatively straightforward?
A)The number of transactions is small.
B)The transactions are typically material.
C)Most stock is issued for cash.
D)There are no disclosure issues to worry about,since stock amounts are reported in the body of the balance sheet.

Question

Quizplus · Accepted Answer

Most stock issuances are issued for cash which makes it fairly easy to determine the value. As there are no complex transactions, valuation becomes straightforward.

Why Is Valuation of Most Stock Issuances Usually Considered to Be