One of the Main Disadvantages of the Forced-Distribution Method of Evaluation

question 12

Multiple Choice

One of the main disadvantages of the forced-distribution method of evaluation is that:

• A)it is unpopular among raters.
• B)it allows too many employees to be categorized as "Excellent."
• C)it is highly unreliable.
• D)administering it becomes very complex in large organizations.

Understand and calculate goodwill in business acquisition scenarios.

Apply the equity method for accounting for long-term investments.

Distinguish between different types of securities and their accounting treatments.

Prepare the necessary journal entries for the acquisition and sale of securities.

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Definitions:

Trial Balance

A financial record-keeping chart where the sums of all ledger balances are gathered into columns of debits and credits, achieving a balance.

Journal Entry

A recording in the accounting books of a business transaction expressed in terms of debits and credits.

Correction Journal Entry

A correction journal entry is used to amend errors or omissions in the financial accounting records of a business.

Ledger Accounts

Records that summarize transactions related to a specific asset, liability, equity, revenue, or expense, forming the backbone of the double-entry bookkeeping system.