If an Adjustment for Prepaid Insurance Is Not Made at Year

question 15

Multiple Choice

If an adjustment for prepaid insurance is not made at year end, net income will be:

• A)unaffected.
• B)understated.
• C)overstated.
• D)correct this year but incorrect next year.

Understand the importance of maintaining goodwill and a positive image during negative communication.

Grasp the concept of effectively delivering bad news within an organization.

Recognize when and how to appropriately use a buffer in negative messages.

Understand the structure and components of effective negative messages.

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.