The Compensation Associated with Restricted Stock Under a Stock Award

question 55

Multiple Choice

The compensation associated with restricted stock under a stock award plan is:

• A)the book value of an unrestricted share of the same stock times the number of shares.
• B)the estimated fair value of a share of similar stock times the number of shares.
• C)allocated to expense over the service period which usually is the vesting period.
• D)the book value of a share of similar stock times the number of shares.

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Definitions:

Ending Inventory

The aggregate value of merchandise ready for purchase at the conclusion of a financial period.

Opening Inventory

This is the value of inventory (raw materials, work-in-progress, and finished goods) at the beginning of an accounting period.

Production Budget

An estimate of the total cost of production, including direct labor, materials, and overhead expenses, for a specific period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, usually for managing liquidity.