Barry Owns a Small Software Development Firm

question 20

Multiple Choice

Barry owns a small software development firm.Barry has an employee who needs special accommodations in order to be able to perform the functions of his job.These accommodations would cost $10,000,an amount that Barry believes is more than he should have to spend.The Americans with Disabilities Act provides that an employer is required to make "reasonable accommodations" for employees with a disability,but does not define what constitutes a "reasonable accommodation." Assume that size of the employer (by some measure) determines the maximum amount of money that would be considered reasonable for a particular employer to be required to spend.Under the principles of stare decisis,which of the following is true?

• A) If a similar-size employer had been required to spend $15,000 in the past,then Barry would be required to spend the $10,000.
• B) If a similar-size employer had been required to spend $15,000 in the past,this would not be relevant in Barry's case because it happened in the past.
• C) If a similar-size employer had not been required to spend $15,000 in the past,then Barry would not be required to spend $10,000.
• D) If a similar-size employer had not been required to spend $15,000 in the past,then Barry would be required to spend $10,000.

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Definitions:

IAS 17

An International Accounting Standard that prescribes the accounting policies and disclosures applicable to leases for both lessees and lessors.

Capitalized Lease

A lease treated as an asset purchase for accounting purposes, with the asset being capitalized on the balance sheet.

Financial Statements

These are records that provide an overview of a company's financial condition in both short and long term. They include the balance sheet, income statement, and cash flow statement.

Lease Alternative

This term could refer to the option of leasing as opposed to purchasing an asset, often evaluated to determine the most cost-effective method of acquiring the asset.