Question

This Quiz: 8 pts pos 4 of 8 (8 complete) This Question: 1 pt What is the allocation peried used to expense stock based compensation? A Compensalion expense is allocated during the compensation arrangement periad A campensaton arrangement period is the agreed-upon dates between the employer and employee in which the cal option(s) will be available for the employee to exercise OB Compensation expense is allocated oen the date the cal option's markat price equals ts exercise price OC Compensation expense is alocated over the vesting period This is the period rom the date of the grant to the date the emplayee is able to exercise the option OD. Compensation expense is allacated from the tme the cal option is granted to the emplovee unti the call option expiration date

Answer 1

Answer- option (a)

• Stock based compensation benefits employees will earn while providing service to the company. But employer considers these benefits as expenses and recorded it in the income statement.
• These are non cash expenses. It is the agreed period between employer and employee in which call option can be exercised. That means employee can exercise the option to buy asset at a agreed price on a specific date.
• Thus option (a) is the correct answer.

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