Which of the Following Is Not True Regarding Stock Rights

question 89

Multiple Choice

Which of the following is not true regarding stock rights?

• A)U.S.GAAP does not require recognition of the rights on the date of the grant.
• B)Firms often issue stock rights to raise new capital from current employees.
• C)Shareholders may exercise the stock rights or sell them to others.
• D)IFRS does not require recognition of the rights on the date of the grant.
• E)When holders exercise the stock rights, the firm records the issue of shares at the price paid just as it records the issue of new shares for cash.