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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