Question

Briefly explain at least one accounting issue that results from stock compensation plans.

Briefly explain at least one accounting issue that results from stock compensation plans.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Stock compensation plans:

Shortly itmeans issuing shares at a reduced price. Generally these are issued to employees

Accounting issues:

1.Stock compensation expense are charged to profit or loss account(Income statement)Due to this the net profit will decrease.

2.It will result in a lower EPS as shares outstanding will increase

Add a comment
Know the answer?
Add Answer to:
Briefly explain at least one accounting issue that results from stock compensation plans.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT