The Income Statement for the Year 2010 of Poole Co

question 35

Multiple Choice

The income statement for the year 2010 of Poole Co. contains the following information: The entry to close the expense accounts includes a

• A) debit to Income Summary for $3,500.
• B) credit to Income Summary for $3,500.
• C) debit to Income Summary for $73,500.
• D) debit to Wages Expense for $2,500.

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Definitions:

Deindividuation

A state of reduced individuality, reduced self-awareness, and reduced attention to personal standards; this phenomenon may occur when people are part of a group.

Groupthink

A psychological phenomenon where a group's desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Loafing

The tendency for people to work less hard in a group than when working alone.

Group Polarization

The tendency of a group to make decisions that are more extreme than the initial inclination of its members.