Which of the following stock option plans would involve the creation of a liability account over the life of the plan?
A)all stock option plans
B)fixed compensatory stock option plans
C)performance-based compensatory stock option plans
D)stock option plans with stock appreciation rights

Question

Quizplus · Accepted Answer

Stock option plans with stock appreciation rights (SARs) involve the creation of a liability account over the life of the plan because the employee is entitled to a cash payment equal to the increase in the stock price, which is accounted for as a liability until settled.

Which of the Following Stock Option Plans Would Involve the Creation