Profit Sharing and Gain Sharing Are Two Methods of _______________

question 2

Multiple Choice

Profit sharing and gain sharing are two methods of _______________.

• A) group incentive plans
• B) keeping costs down
• C) calculating pay for top management
• D) employee retirement plans
• E) keeping expense account costs under control

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Definitions:

General Ledger

A comprehensive record of all of a company's financial transactions, used to compile financial statements.

Financial Statements

Formal records that outline the financial activities and condition of a business, including the income statement, balance sheet, and statement of cash flows.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the books for the next period.

Adjusting Entries

Journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.