When Accounting for a Fixed Compensatory Stock Option Plan, a Company

question 24

Multiple Choice

When accounting for a fixed compensatory stock option plan, a company must make which of the following on the date of grant?

• A)journal entry recognizing the common stock issued
• B)journal entry recognizing the compensation expense
• C)memorandum entry explaining the terms of the compensatory stock option plan
• D)memorandum entry of the expected annual compensation expense amount