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

Multiple Choice

• Total owners equity is increased by the par value of the common stock issued when the options are converted.

• The paid-in capital stock options account is credited when compensation expense is recorded each year.

• 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.