On November 5,2014,a Longhaul Rental Truck Was in an Accident

question 20

Multiple Choice

On November 5,2014,a Longhaul Rental truck was in an accident with an auto driven by Alana Rodriguez.Longhaul Rental received notice on January 12,2015,of a lawsuit for $700,000 damages for personal injuries suffered by Rodriguez.Longhaul Rental's counsel believes it is probable that Rodriguez will be awarded an estimated amount in the range between $300,000 and $550,000,and that $400,000 is a better estimate of potential liability than any other amount.Longhaul's accounting year ends on December 31,and the 2014 financial statements were issued on March 2,2015.What amount of loss should Longhaul accrue at December 31,2014?

• A) $0
• B) $300,000
• C) $400,000
• D) $550,000

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Definitions:

Political Behavior

Activities that are not required as part of one's formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization.

Job Rotation

A human resource management strategy where employees rotate between multiple positions within the organization to learn different aspects of a business and enhance skill diversity.

Political Activity

Actions or movements aimed at influencing or participating in the governance of a society.

Higher Levels

a term usually referring to more advanced stages or more senior positions within a hierarchy or process.