To Say That a Childcare Center Is a Labor-Intensive Organization

question 19

Multiple Choice

To say that a childcare center is a labor-intensive organization means that:

• A)the staff work really hard.
• B)the center is unionized.
• C)staff costs are the largest items in the budget.
• D)working at the center is an intense experience.

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Definitions:

Adjustment

The process of making modifications to financial records or accounts to ensure their accuracy and compliance with accounting principles.

Income Statement Approach

A method of estimating certain account balances within an income statement, focusing on revenues and expenses to indirectly calculate other figures.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect those that are expected to go uncollected.