U.S.GAAP prohibits companies from supplementing employee salaries by granting shares of stock rather than cash.

Name: U.S.GAAP prohibits companies from supplementing employee salaries by granting shares of stock rather than cash.
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Question

Quizplus · Accepted Answer

U.S.GAAP does not prohibit companies from supplementing employee salaries with stock-based compensation such as stock options or restricted stock units. However, there are specific accounting and disclosure requirements that must be followed.

USGAAP Prohibits Companies from Supplementing Employee Salaries by Granting Shares