Additional Case 3.1

question 87

Multiple Choice

Additional Case 3.1
You have been hired as HR Director of a company with about 100 employees. As you begin to learn about the company, you discover that female managers are paid about 20% less than their male counterparts. When you ask why, the CEO explains that men have families to support and women are earning extra income. As you review personnel files, it becomes apparent that protected-class employees are promoted less often and have longer terms between promotions and raises than white employees. A test is used as part of the promotion process, and protected-class candidates always do about 25% worse on it than white candidates. Another test is used to screen job applicants. It screens out about 25% of white male applicants and about 50% of protected-class applicants.

The firm has a hazardous products division. Traditionally, women are not hired or promoted into that division because the CEO is concerned that the toxic nature of the production process will adversely affect the female employees' reproductive processes.

-Refer to Additional Case 3.1.As HR Director,you would most likely inform the CEO that the firm's current promotion test is:

Definitions:

Uncollectible

Refers to accounts receivable that are unlikely to be recovered from debtors.

Debited

An accounting term describing an entry that increases an asset or expense account, or decreases a liability or equity account.

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collectible.

Bad Debts Expense

Represents the recognition of accounts receivable that a company is unable to collect, treated as an expense in the income statement.