Which of the Following Issues May Not Require a Management

question 30

Multiple Choice

Which of the following issues may not require a management policy?

• A)To offer numerous or few employee benefits
• B)To establish a high- or low- safety stock of inventory
• C)To promote from within to or to hire from the outside
• D)To increase motivation
• E)To discourage insider trading

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, recorded on the left-hand side.

Utilities Expense

Utilities Expense refers to the cost incurred from the consumption of utilities services like electricity, water, and gas in the course of business operations.

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, verifying the equality of debits and credits.

Balance Sheet

A financial statement that displays the assets, liabilities, and shareholders' equity of a company at a specific point in time, showing the balance of income and expenditure over the preceding period.