Identify the disadvantage of using profit sharing plans.
A. They cannot be used to improve the organization's performance as a whole.
B. The employees may develop a narrow view of their roles in the organization.
C. They cost more when the organization experiences financial difficulties.
D. Sharing profit with the employees ultimately reduces the organization's profitability.
E. Profit sharing is not directly linked to individual behavior.
Answer: E. Profit sharing is not directly linked to individual behavior.
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J. Smith withdrew $100 from Jay's Limo Services for personal use. Which of the following general journal entries will Jay's Limo Services make to record this transaction?
A.
| Cash | 100 | |
| J. Smith, Capital | 100 |
B.
| J. Smith, Withdrawals | 100 | |
| J. Smith, Capital | 100 |
C.
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D.
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E.
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