Which of the Following Is the Proper Method Used to Account

question 51

Multiple Choice

Which of the following is the proper method used to account for employee stock options?

• A) Fair value
• B) Intrinsic value
• C) Book value
• D) Realizable value

---

Definitions:

Perpetual Inventory System

A system of maintaining inventory records that updates the balance of inventory after each purchase or sale in real time.

Ending Inventory

The total monetary value of products available for transaction at the end of a financial cycle.

Inventory Error

Mistakes or inaccuracies in counting or valuing inventory that can affect financial statements and business decisions.

Cost of Goods Sold

Costs directly linked to creating goods for sale within a business, such as labor and materials.