Which of the Following Was True About Employee Stock Options

question 8

Multiple Choice

Which of the following was true about employee stock options prior to 1995?

• A) The options never had any affect on a company's financial statements
• B) The value of options which were at-the-money when issued had to be expensed on the income statement
• C) The value of options which were at-the-money when issued had to be reported in the notes to the financial statements
• D) Options which were at-the-money when issued did not affect a company's financial statements