Study Set Content:
DISADVANTAGES
Validity depends on the amount of interaction between employees and manager
Ranking
DISADVANTAGES
Time-consuming(if not combined with other methods)
Essay Appraisal
Disadvantages
Can negatively affect teamwork
Ranking
DISADVANTAGES
Tendency to report negative incidents
Critical Incident Appraisal
DISADVANTAGES
Time consuming for manager
Critical Incident Appraisal
DISADVANTAGES
Subjectivity
Graphic Rating Scale
DISADVANTAGES
* Can be difficult to use in making compensation and promotion decisions
Graphic Rating Scale
Disadvantages
Many only work for some types of job titles
Management by Objectives
is “an art of recording, classifying, and
summarizing in a significant manner and in terms of
money, transactions and events which are, in part
at least, of financial character and interpreting the
results thereof.”
Accounting, according to the American
Institute of Certified Public Accountants
(AICPA)
is the language of business because it
serves as the medium of communication
between a business firm and other parties
interested in its financial activities.
Accounting
These are property or rights on property
owned by the business and upon which the
business has a vested equitable interest.
These are economic resources controlled
by the business, resulting from past events,
from which future economic benefits are
expected to flow to the business.
Assets
These include cash and other assets that
are expected to become cash, or to be sold,
or consumed during the regular operating
cycle of the business or one year.
Current Assets
This includes coins, currencies, money
orders, bank checks, bank deposits, and
other cash accounts that are available for
business operations.
Cash
If cash is in the office
premises, it is termed as
Cash on Hand
If
cash is deposited in the bank, it is termed
as
Cash in Bank
These are collectibles from customers,
clients, and other persons for money,goods, or services provided by the business
on credit basis. Usually, this kind of
receivable has no added interest.
b. Accounts Receivables
These are collectibles from customers or
clients, who issue promissory notes in
exchange for goods or services received,
and as evidence of their obligation to pay
the business. Usually, this kind of receivable
has added interest.
Notes Receivable
These are added collectibles from notes
receivables.
Interest Receivable
These are the available stocks of goods to
be sold to consumers/customers. They are
classified as Current Assets because these
goods when sold will either become cash if
sold on a cash basis, or accounts receivable
if sold on credit basis. This is only
applicable for a merchandising and
manufacturing business.
Merchandise Inventory
These are advance payments made for
benefits or services that the business will
receive or use in the future. Items that are
acquired and paid for in advance are
considered Current Assets because they
use up cash resources, the amount of which
would have been bigger on hand. The
following are some examples of prepaid
expenses:
Prepaid Expenses
