The Bentwater Co

question 320

Multiple Choice

The Bentwater Co. just repriced the firm's employee stock options. This action indicates that the:

• A) Firm just paid a dividend on those options.
• B) Firm is retiring some of its outstanding shares.
• C) Market value of the stock has declined significantly.
• D) Exercise price was less than the stock price which is the reason for the repricing.
• E) Options must be puts on the company's stock.

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Definitions:

Entry

A record in an account that documents a financial transaction in bookkeeping.

Special Journals

Customized accounting journals used for recording specific types of transactions that occur frequently.

General Journal

A primary accounting record where all types of financial transactions are initially recorded in chronological order before being posted to specific accounts in the general ledger.

Cash Receipts Journal

A specific financial journal used in accounting to record all cash inflows to a business.