AirCar LLC, a Producer of Consumer Electronics, Provided Its Employees

question 46

Multiple Choice

AirCar LLC, a producer of consumer electronics, provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

• A) It provided group incentives; now it provides organizational incentives.
• B) It provided individual incentives; now it provides group incentives.
• C) It provided individual incentives; now it provides organizational incentives.
• D) It provided organizational incentives; now it provides individual incentives.

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Definitions:

Legal Fees Earned

Income recognized by law firms or attorneys for the provision of legal services.

Unearned Rent

Revenue received by a landlord for rent that has not yet been earned because the time period the rent covers has not yet passed.

Rent Revenue

Income earned from leasing out properties or real estate to tenants.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update the accounts and ensure they reflect the true financial status of a company.