Which of the Following Statements Is True Regarding Equity Classified

question 91

Multiple Choice

Which of the following statements is true regarding equity classified awards?

• A)Compensation expense is modified when the fair value of the options changes.
• B)Deferred compensation expense is increased when when service is rendered.
• C)Employees will exercise options when they are out of the money.
• D)Contributed capital is a form of donated capital.

---

Definitions:

Hormones

Chemical messengers produced by glands in the body that regulate the activity of cells or organs.

Metabolism

The chemical processes that occur within a living organism in order to maintain life, involving the breakdown of substances to generate energy and the synthesis of substances needed by cells.

Unprocessed Foods

Foods that are consumed in their natural state, without undergoing any chemical processing or modification.

AMA Code

A set of ethical guidelines and standards for practicing medicine developed by the American Medical Association.