Which of the following statements about stock options is false?
A)Stock options are intended to give upper management the same goals as stockholders.
B)When stock options are exercised by upper management,existing stockholders lose voting power.
C)Stock options may create an incentive for upper management to overstate net income.
D)An expense is reported by the company when stock options are exercised.

Question

Quizplus · Accepted Answer

An expense is reported when stock options are granted, not when they are exercised.

Which of the Following Statements About Stock Options Is False