A document that states the principles intended to guide a family firm through times of crisis and change, including the succession process, is called the:
A. business plan
B. articles of incorporation
C. family business constitution
D. corporate by-laws
Answer: C
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Everwood Co. had net income of $1,000,000 for the year ending December 31, 2018, its first year of operations. During this time period, Everwood also had a permanent tax difference of $120,000 and its adjusted pre-tax book income is $1,220,000. Analysts have approximated Everwood's taxable income at $735,000 for the year ending December 31, 2018. Which of the following most likely caused the difference between Everwood's book and tax income?
A. A net operating loss carryback. B. Premiums paid on life insurance on key executives where the company is the beneficiary. C. Purchases of long-lived capital assets. D. Accrued warranty expenses not yet deductible on the tax return.
A bank that helps a company finance transactions is both a financial intermediary and a financial public
Indicate whether the statement is true or false
With the introduction of an individual incentive program, Aleksander feels like he is competing with the other members of his team instead of working together with them. While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Aleksander does. They wish they could go back to working together for a group incentive. Which disadvantage of individual incentives does this illustrate?
A. Many jobs have no direct output. B. Individual incentives may motivate undesirable employee behaviors. C. The record-keeping burden needed for individual incentives is high. D. Individual incentives may not fit organizational culture.
An adjusting entry was made on year-end December 31 to accrue salary expense of $2800. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $6200 payment of salaries in January of the following year?
A.
| Salaries Expense | 6200? | |
| Cash | 6200? |
B.
| Salaries Payable | 6200? | |
| Cash | 6200? |
C.
| Salaries Payable | 2800? | |
| Salaries Expense | 3400? | |
| Cash | 6200? |
D.
| Salaries Expense | 2800? | |
| Salaries Payable | 2800? |
E.
| Salaries Payable | 2800? | |
| Cash | 2800? |