Question :
171. Regarding employee stock options, which of the following is/are not : 1230459
171. Regarding employee stock options, which of the following is/are not true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. Firms typically remeasure most types of stock options after the initial grant date.
172. Regarding employee stock options, which of the following is/are not true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the redemption date. E. Firms do not typically remeasure most types of stock options after the initial grant date.
173. Regarding employee stock options, which of the following is/are true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the value per option. C. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. Firms do not typically remeasure most types of stock options after the initial grant date.
174. Regarding employee stock options, which of the following is/are true? A. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. B. Total compensation cost is the number of options the firm expects to vest times the expected value per option at the date of redemption.C. Firms amortize this total cost over the requisite service period, which is the expected period of benefit. D. The requisite service period is usually the period between the grant date and the vesting date. E. Firms do not typically remeasure most types of stock options after the initial grant date.
175. Which of the following is/are true? A. Firms sometimes issue bonds with stock warrants attached and allocate the amount received between the bonds and the warrants based on their respective fair values. B. When firms issue convertible bonds U.S. GAAP requires firms to allocate the full issue price to the bonds and none to the conversion feature. C. IFRS requires firms to allocate the issue price between the bonds and the conversion feature. D. Under IFRS, the firm allocates the issue price of bonds with terms similar to those issued but without the conversion feature to the bonds and the remainder of the issue price to the conversion option.E. all of the above
176. Which of the following is/are not true? A. Firms sometimes issue bonds with stock warrants attached and allocate the amount received between the bonds and the warrants based on their respective fair values. B. When firms issue convertible bonds U.S. GAAP requires firms to allocate the full issue price between the bonds and the conversion feature. C. IFRS requires firms to allocate the issue price between the bonds and the conversion feature. D. Under IFRS, the firm allocates the issue price of bonds with terms similar to those issued but without the conversion feature to the bonds and the remainder of the issue price to the conversion option.E. all of the above
177. Which of the following is/are not true? A. Firms sometimes issue bonds with stock warrants attached and allocate the amount received between the bonds and the warrants based on their respective fair values. B. When firms issue convertible bonds U.S. GAAP requires firms to allocate the full issue price to the bonds and none to the conversion feature. C. IFRS requires firms to allocate the full issue price to the bonds and none to the conversion feature. D. Under IFRS, the firm allocates the issue price of bonds with terms similar to those issued but without the conversion feature to the bonds and the remainder of the issue price to the conversion option.E. all of the above
178. Concerning treasury shares, which of the following is/are true? A. Firms recognize no gain or loss from purchasing their own shares or reissuing previously purchased shares. B. Differences between the purchase and reissue price are not earnings transactions but affect contributed capital accounts. C. Firms account for the purchase of treasury shares using either the cost method or the par value method or the constructive retirement method. D. The methods firms use to account for the purchase of treasury shares differ in terms of the shareholders’ equity accounts affected, but all result in an equal reduction in total shareholders’ equity when firms purchase their own shares.E. all of the above
179. Which of the following is/are true about accounting for errors and changes in accounting principles and changes in accounting estimates? A. Firms account for material errors in previously issued financial statements by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period. B. If practical, firms account for voluntary changes in accounting principles, such as from a LIFO to a FIFO cost-flow assumption for inventories, by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period. C. Firms account for changes in accounting principles required by a new reporting standard in accordance with the guidance specified in the standard. D. Firms account for changes in estimates, such as for depreciable lives, uncollectible accounts, or warranty cost, prospectively, in current and future periods’ earnings.E. all of the above
