Local 121 and Highflyers Inc Management Are Working on a Collective

question 53

Multiple Choice

Local 121 and Highflyers Inc management are working on a collective agreement. Local 121 wants to include a provision that allows bumping- up. Highflyers management feels strongly that such provision should not be included because it wants to be able to

• A) prevent the domino effect that occurs in bumping.
• B) make appointments and promotions based on merit.
• C) reward long- time employees.
• D) make demotions based on incompetence.
• E) all of the above

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Definitions:

Journal Entry

A record in accounting that represents a transaction or adjustment affecting at least two accounts, which is necessary to keep the financial statements accurate.

Effective-Interest Method

An accounting technique used to amortize the discount or premium on bonds payable or receivable over the life of the bond, reflecting the bond's yield.

Zero Coupon Bonds

Bonds issued at a discount from their face value, which do not pay periodic interest but are redeemed at full face value at maturity.