Question

Director fees would be charged to period

Answer 1

Answer:

What don't got question

Answer 2

Director fees would be charged to the post-incorporation period.

Explanation:

• When any purchasing company purchases the business of any vendor company and converts that business into a company.
• So, there comes sometimes a difference in the date of purchase of the business and the date of incorporation of the business.
• Due to this difference, we cannot call  that purchased business a company from the date of purchase.
• So, we need to allocate all the expenses and income between these two periods by taking something as a base.
• Here, director fees are basically charged in the post-incorporation period because these expenses are directly related to the company.