As a Manager of ABC Corporation, You Are in a Tough

question 29

Multiple Choice

As a manager of ABC Corporation, you are in a tough situation. You must send an employee to work with your new client in Europe and Sam is clearly the most qualified candidate. However, ABC Corporation is located in an area where several people of Sam's race have been violently attacked. You must choose to send Sam or Tonya. What should you do?

• A) Automatically send Tonya to Europe without telling Sam he was considered.
• B) Automatically send Sam to Europe because he is clearly the most qualified.
• C) Ask Sam if he wants to go to Europe and discuss the situation.
• D) Assign Sam to a new task and send the Tonya to Europe.

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Definitions:

Retrospective Adjustments

Adjustments made to the financial statements of prior periods when adopting a new accounting principle, as if that principle had always been applied.

Salvage Value

The estimated residual value of an asset after its useful life is over.

Straight-Line Method

A method of calculating depreciation of an asset which spreads the cost evenly across the useful life of the asset.

Prior Period Adjustment

Adjustments made to the financial statements to correct errors or inaccuracies from previous periods.