Reference no: EM132730845

Problem 1: In accounting for share-appreciation rights plans, compensation expense is generally

Group of answer choices

Option 1: recognized in the period of the grant.

Option 2: not recognized because no excess of market price over the option price exists at the date of grant.

Option 3: recognized in the period of exercise.

Option 4: allocated over the service period of the employees.

Problem 2: In computing basic loss per share, the annual preference dividend on cumulative preference shares should be

Group of answer choices

Option 1: added to the net loss only when declared.

Option 2: added to the net loss whether declared or not.

Option 3: ignored.

Option 4: deducted from the net loss whether declared or not.