Which of the following is not a characteristic of an effective evaluation system?
Answer(s): D
The system should be relevant, unbiased, significant, and practical. The evaluation system should be as objective, easy to use, clearly understood, and efficient as possible, but it is not necessary that it be highly structured.
Which of the following hiring procedures provides the most control over the accuracy of information submitted on an employment application?
Answer(s): B
Calling the last place of employment for candidates to verify information represents an independent verification of employment. The hiring organization is performing the verification process.
Performance appraisal systems might use any of three different approaches: 1) who did the job, 2) how the job was done, or 3) what was accomplished. Which approach is used by a system that places the focus on how the job was done?
Answer(s): A
Behavior-oriented performance evaluation rewards the behavior that is desired by management. Behavior control involves examining work processes rather than work output.
The measurement basis most often used to report a long-term payable representing a commitment to pay money at a determinable future date is
The measurement basis most commonly adopted by entities in preparing their financial statements is historical coat. However. it is usually combined with other measurement basesattributes). The attribute used to measure a long-term receivable or payable is the present or discounted value of its future cash flows.
In December Year 1 catalogs were printed for use in a special promotion in January Year2. The catalogs were delivered by the printer on December 13. Year 1 with an invoice for US $70, 000 attached. Payment was made in January Year 2. The US $70.000 should be reported as a deferred cost at the December 31. Year I). balance sheet date because of the
Matching is the simultaneous or combined recognition of revenues and expenses resulting directly and jointly from the same transactions or other events. Expenses should be associated with the revenues that they help to create. Because the catalogs are still on hand at the balance sheet date, they will not contribute to an inflow of economic benefits until the next period. Hence, the cost should be deferred and matched with the revenues of the following period.
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