An Account the Balance of Which Is Subtracted from the Balance

question 186

Multiple Choice

An account the balance of which is subtracted from the balance of a related account so that more complete information than simply the net amount is provided is a(n)

• A) Accrued expense
• B) Contra account
• C) Accrued revenue
• D) Prepaid expense
• E) Withdrawal

Understand the variability in employee selection processes across organizations.

Recognize the limitations and expenses associated with different selection methods, including interviews.

Identify the timing and purpose of reference checks in the selection process.

Know the legal regulations impacting employee selection, including the use of polygraphs and equal employment opportunity laws.

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Definitions:

Equity Securities

Financial instruments that represent ownership in a company or an entitlement to a share in its profits.

Cost Method

An accounting approach used to measure the value of an investment, where the investment's cost includes the purchase price and any costs of acquisition.

Trading Securities

These are securities that a company holds for the purpose of selling them in the near term to profit from price variations, reported at fair value.

Comprehensive Income

The change in equity of a business enterprise during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.