The Net Income Agreement for Crosby and Stills States Net

question 37

Multiple Choice

The net income agreement for Crosby and Stills states net income and net loss shall be divided in a ratio of beginning capital balances.The net loss for the current year is $50,000.On January 1 of the current year,the capital balances were as follows: Crosby,$55,000; and Stills,$65,000.During the current year Crosby withdrew $40,000 and Stills withdrew $25,000.Compute the capital balances as of December 31 of the current year.

• A) \[\begin{array} { | c | c | }
• \hline \text { Crosby, capital } & \text { Stills, capital } \\
• \hline \text { debit of } \$ 7,917 & \text { debit of } \$ 12,917 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | c | }
• \hline \text { Crosby, capital } & \text { Stills, capital } \\
• \hline \text { credit of } \$ 7,917 & \text { credit of } \$ 12,917 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { Crosby, capital } & \text { Stills, capital } \\
• \hline \text { debit of } \$ 7,917 & \text { credit of } \$ 12,917 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | c | }
• \hline \text { Crosby, capital } & \text { Stills, capital } \\
• \hline \text { debit of } \$ 12,917 & \text { credit of } \$ 7,917 \\
• \hline
• \end{array}\]

Identify and explain the concepts of validity and reliability in selection processes.

Recognize the importance of job analysis in forming the basis for selection decisions.

Distinguish between different types of interviews and their application in the hiring process.

Explain the legal and ethical considerations in the selection process, including what can be asked in interviews and applications.

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Definitions:

Cost Volume Profit Analysis

A managerial accounting technique used to analyze how changes in cost and volume affect a company's operating income and net income.

Unit Variable Costs

The costs that vary directly with the volume of production, such as materials and labor, on a per-unit basis.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, focusing on the cost causation.

Cost Volume Profit Analysis

Cost volume profit analysis is a financial technique that examines the impact of changing levels of costs and volume on a company's profit, aiding in decision-making.