Megan Graduated from College Three Years Ago and Has Been

question 101

Multiple Choice

Megan graduated from college three years ago and has been working at Sterba Inc. ever since. A conscientious employee, she has consistently received good performance evaluations. She recently found out that a younger colleague, who was just recruited to her team, is drawing a higher salary than she is for doing the same type of work.
-Following this discovery, Megan starts coming to work late and her productivity begins to suffer. Which of the following is most similar to the scenario mentioned above?

• A) Dawn starts coming to work early and stays late once she learns that the mid-term review is around the corner.
• B) Lisa starts working longer hours after learning that her co-workers earn less than she does for the same work.
• C) Beth submits her resignation after she was passed over for promotion for the second time.
• D) Greg believes he works harder than any of the other members in his department as they often leave the office before him.
• E) Myrtle produces a higher number of units to compensate for the lower quality of her output.

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Definitions:

Common Dividends

Payments made by a corporation to its common shareholders from its after-tax profits.

Professional Judgement

Professional Judgement involves applying expertise, knowledge, and experience to make informed decisions and assessments in the context of accounting and auditing.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur, providing a more accurate picture of a company's financial health.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio or a company's product line to minimize risks.