Which of the following is true about stock- based compensation? (check all that apply) Stock-based compensation expense is always reported as part of Selling, General, and Administrative (SG&A) expense The fair value of an option grant is always greater than the strike price of the option grant Stock-based compensation expense is adjusted based on movements in stock price after the exercise date Stock-based compensation expense must be added back in the Operating section of SCF under the indirect method

Which of the following is true about stock- based compensation? (check all that apply) Stock-based compensation expense is always reported as part of Selling, General, and Administrative (SG&A) expense The fair value of an option grant is always greater than the strike price of the option grant Stock-based compensation expense is adjusted based on movements in stock price after the exercise date Stock-based compensation expense must be added back in the Operating section of SCF under the indirect method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If common stock is issued for an amount greater than par value, the excess goes to what account? a. Legal Capital b. Retained Earnings C. Cash d. Paid-in-Capital in Exess of Par Value A Moving to the next question prevents changes to this answer. & % #3 8.
In an equity swap where a liability is settled through the issuance of equity securities A.no gain or loss is recognized B.gains are recognized as Share Premium, losses are expensed. C.gain or loss is recognized as the difference between the measurement amount of the equity securities issued and the carrying amount of the liability derecognized D.any apparent gain or loss is recognized in equity as an addition to share premium
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Discuss the relevance of cum-div closing date on the valuation of an option on an underlying asset is expected to pay a dividend.
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