Oftentimes,companies Use This Method to Trim Their Payroll Responsibilities by Encouraging

question 20

Multiple Choice

Oftentimes,companies use this method to trim their payroll responsibilities by encouraging higher paid workers with more seniority to voluntarily leave the company earlier than previously planned.

• A)resignation plans
• B)severance plans
• C)early retirement programs
• D)employee expenditure plans

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Definitions:

Salvage Value

The projection of an asset's resale value after it ceases to be of use.

Gain or Loss

The financial outcome resulting from the sale of assets or securities, determined by the difference between the sale price and the original purchase price.

Intangible Assets

Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.

Long-Lived Assets

Assets that are expected to provide economic benefits to a company for a period longer than one year.