Listed Below Are Five Terms Followed by a List of Phrases

question 44

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.
-Grant date

• 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:

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to their correct amounts.

Normal Balance

The side (debit or credit) of an account that is normally expected to have a higher balance, indicating its increase.

Financial Statement

A document detailing quantitatively the financial state of a business, covering its balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Categories of accounts in accounting: permanent accounts track long-term financial status, while temporary accounts track revenues, expenses, and dividends over a specific period.