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Which of the following statements does not accurately reflect the financial accounting for compensatory stock option plans? Multiple Choice The paid-in capital stock options account

Which of the following statements does not accurately reflect the financial accounting for compensatory stock option plans?

Multiple Choice

  • The paid-in capital stock options account is credited when compensation expense is recorded each year.
  • Total owners' equity is increased by the par value of the common stock issued when the options are converted.
  • The compensation expense is not adjusted for changes in the market value of the stock options during the service (vesting) period.
  • Compensation expensed is allocated equally over the service (vesting) period.

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