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It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. * These are actually deferred cash dividends. * It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *

It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. * These are actually deferred cash dividends. * It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *

FINANCIAL ACCOUNTING
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. It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. *
  2. These are actually deferred cash dividends. *
  3. It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *
A. Book value I. Contractual appropriation J. Share appreciation right K. Quasi-reorganization L. Share dividends M. Legal appropriation N. Recapitalization O. Intrinsic value P. Property dividends B. Equity-settled C. Vesting period D. Date of grant E. Liability dividends F. Cash-settled G. Date of declaration H. Liquidating dividends
Transcribed Image Text:A. Book value I. Contractual appropriation J. Share appreciation right K. Quasi-reorganization L. Share dividends M. Legal appropriation N. Recapitalization O. Intrinsic value P. Property dividends B. Equity-settled C. Vesting period D. Date of grant E. Liability dividends F. Cash-settled G. Date of declaration H. Liquidating dividends
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