Scenario B

question 75

Multiple Choice

Scenario B. You and a group of classmates decide to form a management club at your college or university. During this process the following occurs:
1. Initially, a group of interested classmates meets to decide what you want to do in the club. Many great ideas are put on the table and enthusiasm is high.
2. A few meetings later, things are quite different. Now, individuals who put some of the original ideas on the table are fighting hard for their agenda and tempers are flaring. Some individuals are also causing conflict in their efforts to gain leadership positions in the club; the President's job is particularly hotly contested.
3. After a few weeks of conflict, the members realize that if they don't come together, nothing will get done. The leadership roles have been decided now and group members begin to, as they said, "bond" and work together more.
4. By the end of the first semester, the group is "running like a top!" The projects are on track, members are executing their assigned tasks and the group feels a sense of success.

-At the point of the club's initial meeting,which stage of group formation would you use to describe their status?

• A)Declining
• B)Storming
• C)Forming
• D)Performing
• E)Norming

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Definitions:

Perpetual Inventory System

An inventory system that tracks merchandise in real-time, updating inventory records immediately upon purchase or sale.

Periodic Inventory System

An inventory accounting system where updates to inventory levels and Cost of Goods Sold are made at set intervals.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

IFRS

International Financial Reporting Standards, a set of accounting standards providing a global framework for how public companies prepare financial statements.