Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

If a company offers compensatory time to an employee instead of overtime, a worker must:

Be paid double their regular hourly wage for the overtime hours

Receive a bonus payment instead of time off or overtime pay

Work additional hours without any additional compensation or time off

Receive time off at a later date equal to the overtime hours worked

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Verified step by step guidance

Understand the concept of compensatory time: Compensatory time, often referred to as 'comp time,' is an arrangement where employees are given time off instead of monetary payment for overtime hours worked.

Review the Fair Labor Standards Act (FLSA): In many jurisdictions, compensatory time is regulated by labor laws, such as the FLSA in the United States, which specifies how overtime and compensatory time should be handled.

Clarify the correct answer: The correct answer states that the employee receives time off at a later date equal to the overtime hours worked. This means the employee is compensated for their overtime work in the form of equivalent time off rather than additional pay.

Compare the incorrect options: Analyze why the other options are incorrect. For example, paying double the regular hourly wage is monetary compensation, not compensatory time. Similarly, a bonus payment or requiring additional hours without compensation does not align with the concept of compensatory time.

Summarize the key takeaway: Compensatory time is a non-monetary form of compensation for overtime hours, where employees are granted equivalent time off instead of receiving overtime pay.