1. When share options granted vest base on a service condition a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year c. Total fair value of the share options granted = Total compensation expense recognized over the vesting period d. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year 2. When share appreciation rights are granted to employees a. expense, liability and equity accounts are recognize b. expense and equity accounts are recognize c. expense and liability accounts are recognize d. liability and equity account are recognized 3. Provided the specified vesting conditions, if any, are met, share-base payment arrangement is an arrangement between an entity and another party that entitles the other party to receive a. Cash or other assets of the entity for amounts that are based on the price (or value) or equity instruments of the entity and Equity instruments of the e b. Cash or other assets of the entity for amounts that are based on the recoverable amount of the Equity Instruments of the entity c. Equity Instruments of the entity equal to the monthly compensation of the employee d. Equity Instruments of the entity that could be converted into based on the discretion of the employee on or before the vesting period 3. Which of the following is not correct? a. If the the fair value of share options is not determinable, an entity may use the option's intrinsic value. b. When a corporations uses the intrinsic value to measure the share options granted, it requires re-measurement of the compensation expense every reporting date during the vesting period and until those options are exercise. c. When share appreciation rights are granted, a journal entry is recorded which includes a credit to share options outstanding. d. Share options outstanding is an additional paid in capital account

1. When share options granted vest base on a service condition a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year c. Total fair value of the share options granted = Total compensation expense recognized over the vesting period d. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year 2. When share appreciation rights are granted to employees a. expense, liability and equity accounts are recognize b. expense and equity accounts are recognize c. expense and liability accounts are recognize d. liability and equity account are recognized 3. Provided the specified vesting conditions, if any, are met, share-base payment arrangement is an arrangement between an entity and another party that entitles the other party to receive a. Cash or other assets of the entity for amounts that are based on the price (or value) or equity instruments of the entity and Equity instruments of the e b. Cash or other assets of the entity for amounts that are based on the recoverable amount of the Equity Instruments of the entity c. Equity Instruments of the entity equal to the monthly compensation of the employee d. Equity Instruments of the entity that could be converted into based on the discretion of the employee on or before the vesting period 3. Which of the following is not correct? a. If the the fair value of share options is not determinable, an entity may use the option's intrinsic value. b. When a corporations uses the intrinsic value to measure the share options granted, it requires re-measurement of the compensation expense every reporting date during the vesting period and until those options are exercise. c. When share appreciation rights are granted, a journal entry is recorded which includes a credit to share options outstanding. d. Share options outstanding is an additional paid in capital account

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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1. When share options granted vest base on a service condition

a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period

b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year

c. Total fair value of the share options granted = Total compensation expense recognized over the vesting period

d. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year

2. When share appreciation rights are granted to employees

a. expense, liability and equity accounts are recognize

b. expense and equity accounts are recognize

c. expense and liability accounts are recognize

d. liability and equity account are recognized

Provided the specified vesting conditions, if any, are met, share-base payment arrangement is an arrangement between an entity and another party that entitles the other party to receive

a. Cash or other assets of the entity for amounts that are based on the price (or value) or equity instruments of the entity and Equity instruments of the e

b. Cash or other assets of the entity for amounts that are based on the recoverable amount of the Equity Instruments of the entity

c. Equity Instruments of the entity equal to the monthly compensation of the employee

d. Equity Instruments of the entity that could be converted into based on the discretion of the employee on or before the vesting period

Which of the following is not correct?

a. If the the fair value of share options is not determinable, an entity may use the option's intrinsic value.

b. When a corporations uses the intrinsic value to measure the share options granted, it requires re-measurement of the compensation expense every reporting date during the vesting period and until those options are exercise.

c. When share appreciation rights are granted, a journal entry is recorded which includes a credit to share options outstanding.

d. Share options outstanding is an additional paid in capital account

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