A Pay Plan That Does Not Encourage the Overall Company

question 75

Multiple Choice

A pay plan that does not encourage the overall company good is

• A)profit sharing.
• B)an employee stock option plan.
• C)contingent pay.
• D)monthly salary.

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Definitions:

Aging of Receivables Method

An accounting technique used to estimate the amount of receivables that may not be collectible, based on the length of time they have been outstanding.

Percent of Sales Method

A financial forecasting model that estimates certain balance sheet and income statement accounts as a percentage of projected sales.

Bad Debt Expense

The amount of receivables that a company estimates it will not collect.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.