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Which of the Following Statements About Liability-Classified Awards Is True

Question 53

Multiple Choice

Which of the following statements about liability-classified awards is true?


A) When a company records compensation expense, it will adjust additional paid-in capital at the grant date.
B) In accounting for liability-classified awards, a company records deferred compensation at the grant date.
C) The value of a liability-classified award is typically based on the company's equity.
D) The value of liability classified awards remains unchanged until the award is settled.

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