Laura Is a Senior Manager at Pine and Acorn Consultancy

question 14

Multiple Choice

Laura is a senior manager at Pine and Acorn Consultancy.After the recent rounds of semi-annual appraisals,Pine and Acorn's human resource manager Harry informed Laura that she had given approximately the same rating on every item of the appraisal to a few of her subordinates.Which of the following potential errors in performance appraisals has Laura committed?

• A) Forced-choice
• B) Leniency
• C) Central tendency
• D) The halo effect
• E) Recency

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Definitions:

Cash Account

An account where all transactions are made in cash, including receipts and payments.

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Internal Control

Strategies and methods adopted by a business to maintain the accuracy of its financial and accounting records, encourage responsibility, and deter dishonest practices.

Detection of Errors

The process of identifying and correcting mistakes in financial records or transactions.