Which of the Following Is an Example of a Relational

question 44

Multiple Choice

Which of the following is an example of a relational return?

• A)Short-term incentives
• B)Employment security
• C)Long-term incentives
• D)Income protection

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Definitions:

Economic Entity Assumption

This accounting principle assumes that a company's financial activities are distinct from those of its owners or other businesses.

Accounting Concept

Fundamental principles or theories that underpin financial accounting practices, such as the matching principle or accrual basis accounting.

Personal Loan

An unsecured loan given to an individual based on their creditworthiness, without requiring collateral, typically used for personal expenses.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund a company or produce more wealth.