Listed Below Are Five Terms Followed by a List of Phrases

question 107

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Option exercise price

• A)Require(s) compensation expense regardless of condition satisfaction.
• B)Date on or after which employees can buy stock with options.
• C)An important factor in option pricing models.
• D)Date on which options are awarded.
• E)The amount paid to convert the option into stock.

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Definitions:

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares.

Comprehensive Income

This is a measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Accrual-Based Sales Revenue

Revenue recognized when earned, regardless of when the payment is received, following the accrual basis of accounting.

Ending Inventory

The worth of merchandise ready for sale when an accounting period concludes, determined by adding beginning inventory and purchases, then subtracting the cost of goods sold.