When TruTech Transfers an Employee to One of Its Offices

question 73

Multiple Choice

When TruTech transfers an employee to one of its offices in another city, it offers that employee help with things like moving expenses, buying a new house, and finding a good school for the children. This type of assistance is known as

• A)outplacement services.
• B)relocation services.
• C)advisory services.
• D)adjustment services.

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Definitions:

Unearned Interest: Leases

Interest that has been collected on a lease agreement before it has been earned, usually according to the payment schedule.

Residual Value

The anticipated revenue from selling an asset once it has reached the end of its serviceable life.

Present Value Factors

Multipliers used to calculate the present value of a future amount of money or stream of cash flows, given a specific discount rate.

Operating Lease

An Operating Lease is a leasing agreement allowing the use of an asset but does not convey rights of ownership, with the lease term substantially less than the asset's economic life.