Which of the Following Is an Acceptable Method of Accounting

question 18

Multiple Choice

Which of the following is an acceptable method of accounting for employee stock options?

• A) prospective method
• B) fair value method
• C) intrinsic method
• D) historical value method

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Definitions:

Emotional Responses

The experiential, physiological, and behavioral reactions that occur in response to stimuli perceived as emotionally significant.

Deliberate Choice

The act of making a decision consciously and intentionally.

Availability Heuristic

A psychological shortcut that leverages the readily available examples in someone's consciousness when deliberating on a particular matter, concept, methodology, or decision.

Airplane Crash

An incident involving the failure and destruction of an aircraft during flight, usually leading to casualties.