- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 8. Topics in Long-Term Liabilities and Equity
- Subject 5. Financial Reporting for Post-Employment and Share-Based Compensation Plans
CFA Practice Question
When options are granted, SFAS 123 recommends to debit ______ and credit ______.
II. paid-in capital - stock options
III. compensation expense
IV. common stock (par)
I. cash
II. paid-in capital - stock options
III. compensation expense
IV. common stock (par)
Correct Answer: debit III and credit II.
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | compensation expense || equity (pic / stock options) *debit* *credit* |