Data Accountants, a Private Employer, Handles Bookkeeping for Small Employers

question 1

Multiple Choice

Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Data from subjecting its employees to​

• A) ​job-skills tests.
• B) ​monitoring of business communications.
• C) ​drug tests.
• D) ​lie-detector tests.

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash inflows and outflows from operating activities are reported, as opposed to the indirect method.

Operating Expenses

The costs associated with the normal operations of a business, such as rent, utilities, and payroll, excluding cost of goods sold.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.