Which of the Following Is a Discretionary Benefit

question 58

Multiple Choice

Which of the following is a discretionary benefit?

• A) unemployment insurance
• B) disability insurance
• C) FMLA leaves
• D) Social Security

Calculate net realizable value of receivables and understand its significance in financial reporting.

Understand the impact of sales returns, allowances, and credit card discounts on gross profit calculation.

Prepare adjusting entries related to uncollectible accounts and understand their impact on financial statements.

Understand the effect of changes in accounts receivable on cash flow from operating activities.

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Definitions:

Supplies

Items used in the day-to-day operations of a business, such as office supplies, which may be consumable or expendable.

Journal Entry

A record in accounting that notes every transaction, detailing the debits and credits for financial reporting purposes.

Building Purchase

The acquisition of a physical structure intended for use in operations or as an investment, through payment or financing.

Land Purchase

The acquisition of land property for building or investment purposes, recorded as a long-term asset in the business's financial statements.