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:

Research Method

A systematic plan, procedure, or strategy used to investigate, acquire, or analyze information on a subject.

Field Research

The collection of data outside a laboratory, office, or classroom setting, often in its natural context or place of occurrence.

Experiments

Systematic procedures carried out under controlled conditions to discover, test, or demonstrate a fact or principle.

Unbiased

Characterized by a lack of prejudice or partiality; impartial in perspective or opinion.