Employees at GameTime Software Participate in a Gainsharing Plan

question 46

Multiple Choice

Employees at GameTime Software participate in a gainsharing plan. Employee bonuses are calculated by dividing payroll expenses by total sales. GameTime Software most likely uses which of the following plans?

• A)Lincoln
• B)Rucker
• C)Improshare
• D)Scanlon

---

Definitions:

Operating Cash Flows

The cash generated from the normal operating activities of a business, reflecting its ability to generate positive cash flow to maintain and grow its operations.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in the United States.

Operating Activities

Operating activities relate to the primary revenue-generating activities of a business, influencing its net income and cash flows from operations.

Prepaid Expenses

Prepaid expenses represent payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet until they are consumed or used.