Assume Common Stock Is Issued to Employees as a Result

question 72

Multiple Choice

Assume common stock is issued to employees as a result of exercising stock warrants issued under a noncompensatory stock option plan.Which of the following accurately describes the effect on the company's income, paid-in capital, and retained earnings, respectively?

• A)decreased, increased, and decreased
• B)no effect, increased, and increased
• C)decreased, increased, and no effect
• D)no effect, increased, and no effect

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Definitions:

Personality Clusters

These are groupings of traits that are often found together in individuals, helping in the assessment and understanding of different personality types.

Dramatic-impulsive

Personality traits marked by expressive, unpredictable, and often erratic behaviors, emphasizing immediate gratification.

Odd-eccentric

This term relates to behaviors or personality traits that are unusual or deviate significantly from cultural norms, often associated with certain personality disorders.

Anxious-fearful

A personality disposition characterized by high levels of anxiety and fear.