Which of the Following Statements Is True Regarding Share Appreciation

question 169

Multiple Choice

Which of the following statements is true regarding share appreciation rights (SAR) payable in cash?

• A)Any change in estimated total compensation is recorded as a prior adjustment.
• B)The total amount of compensation is not known for certain until the date the SAR is exercised.
• C)The liability is adjusted only to reflect each additional year of service.
• D)None of these is correct.

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Definitions:

Fear Response

The automatic, rapid and often unconscious reaction to a perceived threat, involving physiological changes such as increased heart rate.

Amygdala

A section of the brain that is involved in emotions, emotional behavior, and motivation.

Electrical Stimulation

The use of electrical impulses to stimulate nerves or muscles for therapeutic purposes.

Learned Taste Aversion

A conditioned response where an individual develops a dislike or avoidance of a specific food that has been associated with an unpleasant experience, such as illness.