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Basic Question 13 of 15

When options are granted, SFAS 123 recommends to debit ______ and credit ______.

I. cash
II. paid-in capital - stock options
III. compensation expense
IV. common stock (par)

User Contributed Comments 1

User Comment
quanttrader compensation expense || equity (pic / stock options)
*debit* *credit*
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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

explain the financial reporting of defined contribution, defined benefit, and stock-based compensation plans

CFA® 2025 Level I Curriculum, Volume 2, Module 8.