Question 1
1 out of 1 points
Opposition to the FASB review of
APB No. 25
on stock options arose because stock options do
not
involve a cash outflow, and to treat them as an expense violates materiality.
Selected
Answer:
False
Question
2
1 out of 1 points
Under current GAAP a stock dividend will reduce assets.
Selected
Answer:
False
Question
3
1 out of 1 points
The par value of common stock is set by the state government.
Selected
Answer:
False
Question
4
1 out of 1 points
SFAS No. 123
was issued as a compromise to the FASB's original position regarding stock
options as it
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Selected
Answer:
allowed
companies to
choose either
the
APB No.
25
approach or
expense the
fair value of the
options.
Question
5
1 out of 1 points
The entity view of a firm stresses the importance of the owners' equity.
Selected
Answer:
False
Question
6
1 out of 1 points
SFAS No. 123
was issued as a compromise to the FASB's original position regarding stock
options as it allowed companies to choose either the
APB No. 25
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- Spring '10
- Stewart
- Generally Accepted Accounting Principles
-
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