How Is the Balance Sheet Linked to the Other Financial

question 173

Multiple Choice

How is the balance sheet linked to the other financial statements?

• A)The amount of retained earnings reported on the balance sheet is equal to net income.
• B)Retained earnings is added to total assets and reported on the balance sheet.
• C)Net income increases retained earnings on the statement of retained earnings,which ultimately increases retained earnings on the balance sheet.
• D)There is no link between the balance sheet and other statements,as each contains different accounts and provides different information.

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Definitions:

Dispositional Attributions

The tendency to attribute someone's behavior to their personality or disposition rather than to external factors.

Situational Attributions

The process of explaining someone's behavior based on external factors or the situation.

Western Countries

Refers to nations primarily located in the Western Hemisphere, often associated with economies that are relatively developed and democratic political systems.

Fundamental Attribution Error

The tendency, in explaining other people’s behavior, to overestimate personality factors and underestimate the influence of the situation.