Which Is an Example of the Compensation Strategy

question 1

Multiple Choice

Which is an example of the compensation strategy?

• A)63 × 5 = 63 + 63 + 63 + 63 + 63 = 315
• B)27 × 4 = 20 × 4 + 7 × 4 = 80 + 28 = 108
• C)46 × 3 = 46 × 2 (double)+ 46 = 92 + 46 = 138
• D)27 × 4 is about 30 (27 + 3)× 4 = 120; then subtract out the extra 3 × 4,so 120 -12 = 108

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Definitions:

Adjusting Entries

Documentation in accounting completed at the end of a financial period to rightly assign incomes and expenses to the appropriate time.

Office Supplies

Items used in offices for daily operations, such as paper, pens, and staplers.

Interest-Bearing Note

A promissory note with a specified interest rate, where the issuer agrees to pay the bearer interest in addition to repaying the principal amount at maturity.

Adjusting Entries

Accounting records finalized at the close of an accounting period to properly assign income and expenses to the period they truly belong to.