Once the Expected Performance Has Been Defined and Employees' Performances

question 78

True/False

Once the expected performance has been defined and employees' performances have been measured,it is necessary to feed that performance information back to the employees so that they can correct any deficiencies.

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Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or the rights to ownership (derivatives).

Fair Value

An estimated market value of an asset or liability, reflecting current market conditions rather than historical cost, used in financial reporting.

Adjusting Entries

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

Equity Interest

Ownership interest in a company, usually in the form of stocks, representing a share of the earnings and assets of the business.