Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Find out more

Basic Question 6 of 14

When options are granted, SFAS 123 recommends to debit ______ and credit ______.

I. cash
II. paid-in capital - stock options
III. compensation expense
IV. common stock (par)
Check Answer Previous Q Next Q Print

User Contributed Comments 1

User Comment
quanttrader compensation expense || equity (pic / stock options)
*debit* *credit*
You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain issues associated with accounting for share-based compensation;

explain how accounting for stock grants and stock options affects financial statements, and the importance of companies' assumptions in valuing these grants and options.

CFA® 2025 Level II Curriculum, Volume 2, Module 11.