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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a disadvantage of gain-sharing plans?

They may encourage short-term focus at the expense of long-term goals.

They always guarantee higher profits for the company.

They discourage teamwork among employees.

They eliminate the need for performance measurement.

Previous problemNext problem

Verified step by step guidance

Understand the concept of gain-sharing plans: Gain-sharing is a compensation strategy where employees share in the financial gains of the company, typically based on improved productivity or cost savings.

Analyze the potential disadvantages of gain-sharing plans: While gain-sharing can motivate employees, it may have drawbacks such as encouraging a short-term focus rather than aligning with long-term organizational goals.

Evaluate each option provided in the question: For example, 'They may encourage short-term focus at the expense of long-term goals' aligns with the disadvantage mentioned above, while the other options ('They always guarantee higher profits,' 'They discourage teamwork,' and 'They eliminate the need for performance measurement') do not accurately reflect the typical disadvantages of gain-sharing plans.

Consider the implications of each option: Gain-sharing plans generally promote teamwork rather than discourage it, and they do not eliminate the need for performance measurement; instead, they rely on it to determine gains. Additionally, they do not guarantee higher profits, as success depends on various factors.

Select the most accurate disadvantage: Based on the analysis, the correct disadvantage is 'They may encourage short-term focus at the expense of long-term goals,' as this reflects a common concern with gain-sharing plans.