Bellingham Inc

question 101

Multiple Choice

Bellingham Inc. discovered in early 2014 that it had overstated depreciation expense reported on its 2013 income statement. How would this correction of an error be handled?

• A) Adjust depreciation expense for the error in 2014.
• B) No adjustment needed.
• C) Deduct the amount from 2014 net income.
• D) Adjust the beginning of the year balance in the December 31, 2014 retained earnings statement.

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Definitions:

Systematically Reward

The process of providing rewards or reinforcements in a planned and consistent manner to encourage specific behavior.

Classical Conditioning

The method by which learning occurs by associating a stimulus that originates in the environment with a naturally existing one.

Operant Conditioning

Operant Conditioning is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Reflexive Behaviour

Automatic, involuntary actions or responses to stimuli, that do not require conscious thought.