Which Is the Most Productive Course of Action When Firing

question 52

Multiple Choice

Which is the most productive course of action when firing an employee?

• A)Have the former employee return one week later for severance pay and to discuss how the employee has moved on.
• B)Explain the details of the termination to all remaining employees to avoid rumors.
• C)Be very clear about the termination and the reasons for it.
• D)Change passwords and programs and collect keys from the former employee within one week.
• E)Give the terminated employee the rest of the afternoon to say "good bye" to coworkers and colleagues.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Fiscal Year

A fiscal year is a 12-month period used for accounting purposes, often not aligning with the calendar year, to report financial performance.

Ledger

A comprehensive collection of a company's financial accounts, where all transaction data is recorded, including debits and credits.

Adjusting Entries

Journal entries made at the end of an accounting period to record revenues to the period they are earned and expenses to the period incurred.