A Company Uses the Perpetual Inventory System and Recorded the Following

question 154

Multiple Choice

A company uses the perpetual inventory system and recorded the following entry: $$\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 2,500 & \\\hline \text { Merchandise Inventory } & & 50 \\\hline \text { Cash } & & 2,450 \\\hline\end{array}$$ This entry reflects a:

• A)Return of merchandise.
• B)Payment of the account payable less a 1% cash discount taken.
• C)Payment of the account payable less a 2% cash discount taken.
• D)Sale of merchandise on credit.
• E)Purchase of merchandise on credit.

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Definitions:

Signalling Theory

Job applicants interpret their recruitment and selection experiences as cues or signals about unknown characteristics of a job and an organization and what it will be like to work in an organization.

Harshness

The quality of being extremely strict or severe in conditions or treatment.

Perceptual Biases

Cognitive biases that result from the simplification of processing social realities, often leading to distorted interpretations.

Central Tendency

The tendency to assign most ratees to middle-range job performance categories.