It Is Becoming More Common for Corporations to Provide Daycare

question 62

Multiple Choice

It is becoming more common for corporations to provide daycare facilities as a fringe benefit for their employees. What has evaluative research found regarding the costs and benefits of these facilities?

• A) Daycare facilities are ineffective because they are used by only a few employees.
• B) Because of the large number of employees using them, daycare facilities are too expensive to operate.
• C) Operating on-site daycare reduces employee absenteeism, improves production, and increases staff morale.
• D) The results of the research are inconclusive.

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Definitions:

Unadjusted Trial Balance

A preliminary report of all accounts in the general ledger before any adjusting entries are made to ensure debits equal credits.

Adjustments

Journal entries made to correct or update accounting records and financial statements, often at the end of an accounting period.

Prepayment of Expenses

The payment for goods or services before they are received or consumed, often recorded as an asset on the balance sheet until used.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, ensuring that financial statements reflect accurate and up-to-date information.