Which of the Following Would NOT Be an Adjustment to Profit

question 60

Multiple Choice

Which of the following would NOT be an adjustment to profit using the indirect method?

• A) depreciation expense
• B) an increase in prepaid insurance
• C) an increase in inventories
• D) an increase in land

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Definitions:

Pay Equity Legislation

Laws designed to eliminate discrimination in compensation practices based on gender, ensuring equal pay for work of equal value.

Job Evaluation Method

A systematic process for determining the relative value or worth of a job within an organization for the purpose of establishing fair pay scales.

Factor Comparison

A method used in job evaluation that involves comparing jobs to each other based on compensable factors to determine relative worth within an organization.

Forced Distribution Method

A performance evaluation approach where employees are ranked in groups and distributions, often aimed at identifying top performers, average performers, and underperformers.