Which of the following sectors was most adversely affected by the accounting changes requiring the expensing of stock options?

Question

Quizplus · Accepted Answer

The technology sector was most adversely affected by the accounting changes requiring the expensing of stock options. Many technology companies offered stock options as a way to attract and retain talent, and the new accounting rules required them to recognize the cost of these options as an expense on the income statement, reducing reported earnings. This had a significant impact on the perceived profitability of these companies and caused a backlash from some executives who felt that stock options were an important part of their compensation package.

Which of the Following Sectors Was Most Adversely Affected by the Accounting