Statement 1: Upon expiry or lapse of stock rights, a necessary Journal Entry is required to recognize such transaction. Statement 2: Share/stock dividends of the same class are recognized by means of a memorandum entry only. Statement 3: Share/stock dividends of different class are recognized by debiting a new investment account and crediting the original investment account. A. All statements are incorrect B. All statements are correct C. Only one statement is correct D. Only two statements are correct
Statement 1: Upon expiry or lapse of stock rights, a necessary Journal Entry is required to recognize such transaction. Statement 2: Share/stock dividends of the same class are recognized by means of a memorandum entry only. Statement 3: Share/stock dividends of different class are recognized by debiting a new investment account and crediting the original investment account. A. All statements are incorrect B. All statements are correct C. Only one statement is correct D. Only two statements are correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1: Upon expiry or lapse of stock rights, a necessary Journal Entry is required to recognize such transaction.
Statement 2: Share/stock dividends of the same class are recognized by means of a memorandum entry only.
Statement 3: Share/stock dividends of different class are recognized by debiting a new investment account and crediting the original investment account.
Statement 2: Share/stock dividends of the same class are recognized by means of a memorandum entry only.
Statement 3: Share/stock dividends of different class are recognized by debiting a new investment account and crediting the original investment account.
A. All statements are incorrect
B. All statements are correct
C. Only one statement is correct
D. Only two statements are correct
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