Question
Statement I: Under memorandum entry method, only a memorandum entry is necessary in recognizing both the authorization to issue share capital and issuance of share
Statement I: Under memorandum entry method, only a memorandum entry is necessary in recognizing both the authorization to issue share capital and issuance of share capital. Statement II: Under journal entry method, a formal journal entry is prepared upon authorization to issue share capital as well as upon issuance of share capital.
Group of answer choices
A. Statement I is true; Statement II is false
B. Statement I is false; Statement II is true
C. Both statements are true
D. Both statements are false
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
