A Manager Employed 100 Workers at the Beginning of an Accounting

question 32

Multiple Choice

A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the same period. During the period 50 employees voluntarily left their employment and 5 employees were terminated. What was this manager's overall employee turnover rate in the accounting period?

• A) 40%
• B) 50%
• C) 400%
• D) 500%

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Definitions:

Compounded Semiannually

Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.

Strip Bond

A financial instrument obtained by separating the coupons from the principal of a bond, which then sells each part as a zero-coupon bond.

Semi-Annually Compounded

Pertaining to the interest calculation method where the interest is compounded and added to the principal amount twice a year.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on an annual basis.