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

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.

The Equity Method of accounting for investments:     a)  Requires the investment asset to increase proportionally with the affiliates net income   b)  Requires the investment asset to decrease proportionally with the affiliates net loss   c)  Requires the investment asset to decrease proportionally with dividends received   d)  All of the above

eAssignmentSession Locator=&inprogress=false True O False Lo Under the equity method, a stock purchase is recorded at its original cost and is not adjusted to fair market value each accounting period. Y