If the Options Have a Vesting Period of Five Years,what

question 116

Multiple Choice

If the options have a vesting period of five years,what would be the balance in "Paid-in Capital-Stock Options" three years after the grant date?

• A)A credit of $4.8 million.
• B)A credit of $16.2 million.
• C)A debit of $4.8 million.
• D)A debit of $16.2 million.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, included in a company's cash flow statement.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits, usually through dividends.

Financing Activities

Transactions and events where cash is raised for the business through borrowing or issuing equity, reflected in the cash flow statement.