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

question 3

Multiple Choice

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

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

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Definitions:

Oil Depletion

The reduction of available oil resources due to extraction and consumption over time.

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Political leaders are individuals who hold positions of authority in government and have the power and responsibility to make decisions affecting public policy and governance.

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The aggregate quantity of a product or service that buyers are ready and able to buy at a specific price within a designated timeframe.

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