Which of the Following Is an Example of an Extrinsic

question 171

Multiple Choice

Which of the following is an example of an extrinsic reward?

• A)thank you letter from someone outside the company
• B)the feeling of satisfaction from a job well done
• C)receiving employee of the month honours
• D)stock option plan
• E)an employee being thanked publicly by the company's president

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Definitions:

Direct Financing Lease

A type of lease arrangement where the lessor purchases an asset for the lessee and rents it out, effectively acting as a financing tool.

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership of the asset.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its expected useful life in equal annual amounts.

Operating Lease

A leasing agreement for short-term use of an asset, where the lessor retains risks and benefits of ownership.