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Clarence Is a Cat That Is Always Fed in the Same

question 45

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Clarence is a cat that is always fed in the same place, at the same time, every day. His food is taken out of the same cupboard before each meal, which has a particular sound when it opens that is loud enough to be noticeable. One day his owner forgets to feed him and Clarence opens the cupboard door with his paws to try to get at the food on his own. How could we explain the fact that he had never been reinforced to open the cupboard before, yet was still able to do so?

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Definitions:

Capital Lease

A lease arrangement that transfers substantially all the risks and rewards of ownership of an asset to the lessee, essentially treated as a purchase.

Retained Earnings

The portion of net earnings not paid out as dividends but instead reinvested in the company or used to pay off debt.

Deferred Income Taxes

Taxes applicable on income that is recognized in financial statements in one period but is taxable in another period.

Income Taxes Payable

Income taxes payable is a liability account on a company's balance sheet representing the amount of income taxes that the company owes to the government but has not yet paid.