Keenan and Marvin Work at the Same Company

question 9

Multiple Choice

Keenan and Marvin work at the same company.Although they work the same number of hours, produce equally high-quality work, and have the same qualifications, Keenan earns a $5,000 more per year than Marvin.Based on the equity principle, which of the following is least likely to occur:

• A)Keenan feels guilty
• B)Keenan increases the number of hours he works
• C)Keenan blames Human Resources for their faulty pay scale
• D)Keenan decreases his number of hours he works

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Definitions:

Carrying Amount

The value at which an asset or liability is recorded on the balance sheet, including depreciation or amortization.

Reasonable Degree

A reasonable degree refers to an acceptable level of certainty or accuracy, often used to describe the precision expected in estimates or judgments.

Revenue Recognition

Accounting principle that outlines the specific conditions under which revenue is recognized and dictates how to account for it on the financial statements.

Substantially Completes

A phrase indicating that a project or task is nearly finished or that a significant portion of the work has been accomplished.