How is Paid-in Capital from Share Options classified in the financial statements?

Name: How is Paid-in Capital from Share Options classified in the financial statements?
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Question

Quizplus · Accepted Answer

Paid-in Capital from Share Options represents the amount paid by the employees for the shares issued under share option plans. It is not an expense or a liability but a component of stockholders' equity. Therefore, it should be classified as a stockholders' equity account in the financial statements.

How Is Paid-In Capital from Share Options Classified in the Financial