During the Year 2011, Diego Company Earned Revenues of $45,000

question 115

Multiple Choice

During the year 2011, Diego Company earned revenues of $45,000, had expenses of $25,000, purchased assets with a cost of $5,000 and paid dividends of $3,000.Net income for the year is

• A)$45,000.
• B)$20,000.
• C)$17,000.
• D)$15,000.

Recognize the significance of restrictions on retained earnings and the appropriate reporting of adjustments to retained earnings.

Understand the characteristics and benefits of the corporate form of organization.

Learn about the process and implications of issuing stock and the concept of par value.

Comprehend the various rights and responsibilities of stockholders in a corporation.

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Definitions:

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, highlighting the power of authority and obedience in compelling individuals to perform actions against their personal conscience.

Obedience to Authority

The psychological mechanism whereby individuals comply with instructions or commands from someone ranked higher in a hierarchy or perceived as an authority figure.

Hypotheses Underlying

The foundational assumptions or propositions that are proposed for further investigation or that underpin a theoretical framework.

Milgram's Obedience Experiment

A series of social psychology experiments conducted by Stanley Milgram, demonstrating the willingness of participants to obey an authority figure to the extent of causing harm to others.