Older Employees Are Less Valuable Resources to Firms Than Younger

question 38

True/False

Older employees are less valuable resources to firms than younger employees, because older employees have lower levels of knowledge. Consequently, employee layoffs should begin with early-retirement inducements.

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Definitions:

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was operational, thereby lowering its recorded value in the balance sheet.

Commercial Substance

A concept in accounting that refers to a transaction significantly altering the cash flows of an entity, necessitating its recognition in financial statements.

Double-Declining-Balance Method

A method of accelerated depreciation where an asset's book value is reduced at double the rate of straight-line depreciation.

Useful Life

The estimated duration of time a fixed asset is expected to be economically usable by an entity.