Which of the Following Is the Best Example of a Situation

question 45

Multiple Choice

Which of the following is the best example of a situation in which a firm is compensating an employee with base remuneration?

• A) An American engineer working in Japan receives a salary comparable to that of engineers working in the U.S.
• B) A Dutch computer programmer working in Hong Kong receives an additional payment to cover the cost of relocation.
• C) A German accountant working in India receives a one-time bonus for the potential hardships of working abroad.
• D) A British manager working in a civil war-torn zone receives additional allowances for working under perceived threat.

---

Definitions:

Asset

Resources owned by a company that have economic value and can provide future benefits, such as cash, inventory, and equipment.

Liability

A liability refers to financial obligations or debts that a company owes and is required to repay in the future.

Accounting Equation

The fundamental equation of accounting, Assets = Liabilities + Shareholder's Equity, representing the relationship between a company's resources and claims against those resources.

Supplies

Items that are consumed or used up in the daily operations of a business, like office supplies or manufacturing materials.