The Following Is Selected Information from Monty Corporation for the Fiscal

question 24

Multiple Choice

The following is selected information from Monty Corporation for the fiscal year ending October 31, 2022. $\begin{array}{lr}\text { Cash received from customers } & \$ 300,000 \\\text { Revenue recognized } & 378,000 \\\text { Cash paid for expenses } & 180,000\\\text { Cash paid for computers on November 1, } 2023 \text { that will be used }\\\text { for } 3 \text { years (annual depreciation is } \$ 15,000 \text { ) } & 45,000 \\\text { Expenses incurred, including interest, but excluding any depreciation } & 230,000\\\text { Proceeds from a bank loan, part of which was used to pay for }\\\text { the computers }&100,000\end{array}$ What is Monty Corporation's net income for the year ending October 31, 2022?

• A) $75,000.
• B) $105,000.
• C) $133,000.
• D) $148,000.

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Definitions:

Bounded Rationality

A concept suggesting that decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.

Maximization

The process of seeking the highest possible outcome or result from a set of choices or actions.

Base Rates

Basic pay rates established for roles or tasks before any additional benefits or allowances are added.

Not-invented-here Bias

A mindset or culture where innovations or solutions developed outside a particular group are undervalued or rejected, regardless of merit.