Which of the Following Statements Correctly Describes This Journal Entry

question 31

Multiple Choice

Which of the following statements correctly describes this journal entry: $$\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Cash at bank } & 30000000 & \\\hline \mathrm { Cr } & \text { Share capital } & & 30000000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share options (1 } 000000 \text { options) } & 3500000 & \\\hline \mathrm { Cr } & \text { Share capital } & & 3500000 \\\hline\end{array}$$

• A)The issue of options, costing $3.50 each.
• B)The issue of options, costing $30 each.
• C)The exercise of options, with a current market value per share of $3.50.
• D)The exercise of options, initially costing $3 500 000 to issue and with an exercise price for each option of $30.

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Definitions:

Afferent Arteriole

A small artery that carries blood toward the glomeruli of the kidney, playing a key role in the regulation of blood pressure.

Sugar Reabsorption

The process by which the kidneys filter and reabsorb glucose back into the bloodstream, preventing excess sugar from being excreted in urine.

Threshold

A minimum amount of supplies to be maintained; also known as par level.

Afferent Arteriole

A small artery that carries blood toward the capillaries of the glomerulus in the kidney, playing a key role in regulating blood pressure and filtration rate.