At the time of Enron's collapse, the prevailing treatment for employee stock option expense was:
A)Record stock options only when and if exercised, at exercise price
B)Record all stock options when issued, at exercise price
C)Record all stock options at market price
D)Record stock options only when exercised at market price
E)Record not exercised options at market price

Question

Quizplus · Accepted Answer

At the time of Enron's collapse, companies typically recorded stock options only when they were exercised, and at the exercise price, not at the market price.

At the Time of Enron's Collapse, the Prevailing Treatment for Employee