Alan Has Accepted a New Job

question 8

Multiple Choice

Alan has accepted a new job. Which of the following is not a contract condition related to that job?

• A) Medical and dental benefits will start after Alan has worked for six months.
• B) Alan will receive a bonus provided that he obtains six new clients within 30 days.
• C) Alan's salary will be $1,000 a week.
• D) Alan cannot begin work unless he passes a drug and alcohol screening.

---

Definitions:

Jointly Controlled Entity

A business arrangement under shared control by two or more parties, each having strategic and financial control.

Proportionate Consolidation

A method of accounting for a business partnership where the income, expenses, assets, and liabilities of the partnership are combined in proportion to the owning company's percentage of interest in the venture.

Equity Method

An accounting technique used to record investments in other entities, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor’s share of investee’s net assets.