Which of the Following Is FALSE About Equity Theory

question 133

Multiple Choice

Which of the following is FALSE about equity theory?

• A) People compare themselves to co-workers, others elsewhere in the organization, and people in other organizations.
• B) It only matters how people think they are treated; it does not matter what is really happening from the manager's perspective.
• C) People believe that working hard will result in achieving a desired level of task performance.
• D) People compare their personal outcomes to others' outcomes with the result of perceived equity.
• E) People will make equity comparisons whenever rewards are allocated.

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Definitions:

Accrued Receivables

Amounts owed to a business for goods or services delivered but not yet paid by the end of an accounting period.

Income Summary Account

An account used in closing to collect revenues and expenses, the balance of which shows the net income or loss for the period.

Debit Balance

A debit balance is an accounting entry that occurs on the left side of the ledger and indicates the amount of money owed or an increase in assets or expenses.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating the company's profitability.