Sara Is Usually Preoccupied with Immediate Tasks and Seldom Has

question 32

Multiple Choice

Sara is usually preoccupied with immediate tasks and seldom has the time to devote to her employees' concerns,individually.Eric,her employee,who is accustomed to not being heard by Sara,does not bother to inform her about the difficulties he is facing in dealing with a new account.As a result of this,his productivity suffers.This kind of reaction from Eric,where he withholds information,expecting it wouldn't be attended to anyway,is a result of:

• A) selective memory.
• B) selective expectation.
• C) inadequate background information.
• D) physiological limitations.

---

Definitions:

Selling and Administrative Expense

Expenses related to the selling of products and the management of the business, not directly tied to production.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Income Tax Expense

The amount of income tax a company is obligated to pay to the government, based on its taxable income.

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when they are incurred.