Assuming That the Pay Structure Is Well Planned to Support

question 6

Multiple Choice

Assuming that the pay structure is well planned to support the organization's goals,the compa-ratios should be close to:

• A) 0.5.
• B) 1.5.
• C) 2.
• D) 1.
• E) 0.

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Definitions:

Interest Expense

A cost incurred by an entity for borrowed funds, often reflected in the income statement as a non-operating expense.

Journal Entry

A record in accounting that notes the details of a financial transaction and its effect on accounts in a double-entry bookkeeping system.

Interest-bearing Note

An interest-bearing note is a debt instrument that promises to pay interest in addition to the principal amount borrowed.

Journal Entry

A record of a financial transaction in the accounting system that includes the accounts and amounts to be debited and credited.