Answer: B -Merit Pay
Explanation: Merit pay is a performance based incentive to employees. It is financial in nature which means that an employee might be given a bonus or a pay rise for an outstanding performance.
Merit pay is a good performance compensation policy which helps to boost employees performance and there by increasing a company's overall goals of profit making.
Merit pay is a very good incentive which gives employees a sense of belonging in an organisation. it helps employees boost their moral as they are sure that their efforts will be well compensated by the organisation.
Answer:
3. net income is understated by $175
Explanation:
There were two transactions omitted. The first transaction is unearned rent revenue of which $450 was earned. This earned rent revenue increases income by $450. While the second transaction was accrued interest payable of which $275 is owed. This interest payable increases liabilities by $275.
Therefore, from the above, income or revenue is understated by $450, while expenses is understated by $275.
Therefore, net income is understated by income less expenses, thus 450 - 275 = $175. This also implies that liabilities are overstated by $175.
Answer:
A decrease in cash flows from financing activities
Explanation:
When cash dividend is paid,
It is an outflow of cash as paid, therefore it will decrease the cash flows.
Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.
Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.
Whereas cash dividend received is investing activity.
Final Answer
A decrease in cash flows from financing activities.
Answer:
rights offer.
Explanation:
.
rights offer in equity can be regarded as invitation given to shareholders that are still existing in the firm so that they can purchase new shares, which is additional shares in the firm at a specific price which is usually at a particular time usually like 16 to 30 days. It should be noted that An equity issue sold to the firm's existing stockholders is called a rights offer
