Which of the Following Statements Is True Regarding Share Appreciation

question 169

Multiple Choice

Which of the following statements is true regarding share appreciation rights (SAR) payable in cash?

• A)Any change in estimated total compensation is recorded as a prior adjustment.
• B)The total amount of compensation is not known for certain until the date the SAR is exercised.
• C)The liability is adjusted only to reflect each additional year of service.
• D)None of these is correct.

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