Options Trading Tutorial

Intermediate accounting questions?

Can you tell me the correct answer for all these multiple choice questions below? Thank you. 1. Under the intrinsic value method, compensation expense resulting from an incentive stock option is generally a. not recognized because no excess of market price over the option price exists at the date of grant. b. recognized in the period of the grant. c. allocated to the periods benefited by the employee's required service. d. recognized in the period of exercise. 2. An executive compensation plan in which the executive may receive compensation in cash, shares of stock, or a combination of both, is known as ______________ plan. a. a nonqualified stock option b. a performance-type c. a stock appreciation rights d. both a performance-type and a stock appreciation rights 3. A corporation should record no compensation expense for which of the following types of executive compensation plans? a. Stock appreciation rights b. Nonqualified stock option plans c. Incentive stock option plans d. Compensation expense should be recorded for all of these. 4. The payment to executives from a performance-type plan is never based on the a. market price of the common stock. b. return on assets (investment). c. return on common stockholders' equity. d. sales.

Public Comments

1. Look at your text book.