Non Cash Activities Such as an Exchange of Shares for a Piece

question 100

True/False

Non cash activities such as an exchange of shares for a piece of equipment need to be disclosed either on a separate schedule at the bottom of the statement of cash flows or in a note to the financial statements.

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Definitions:

Profit Sharing Plan

A compensation structure where employees receive a share of the company's profits, usually allocated as part of their annual income.

Scanlon

A participative management approach that focuses on employee involvement in problem solving and decision making related to productivity improvement and cost reduction.

Rucker Plans

A profit-sharing plan where employee pay is linked to the productivity or profitability of a company, encouraging increased worker output and company success.

Employee Participation

The involvement of employees in decision-making processes, planning, and aspects of their work environment to improve commitment and productivity.