Which of the Following Is a Reason for the Growth

question 49

Multiple Choice

Which of the following is a reason for the growth of benefits as a method of employee compensation?

• A)The tax treatment of benefits programs is less favorable for employees than the tax treatment of wages and salaries.
• B)People prefer a dollar in cash over a dollar's worth of any specific commodity.
• C)The legislation passed during the Great Depression was not conducive to benefits.
• D)Benefits are covered by wage and price controls.
• E)Groups of employees can typically receive a cost advantage over individuals.

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Definitions:

Accrue Revenue

The process of recognizing revenue that has been earned but not yet received in cash, to reflect it in the financial statements.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as the difference between total assets and total liabilities.

Liabilities

Obligations owed by a company to parties external to the business, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Resources owned by a company that have economic value and can provide future benefits, including cash, property, and equipment.