Zachary Is Unhappy in His Relationship and Is Trying to Decide

question 89

Multiple Choice

Zachary is unhappy in his relationship and is trying to decide whether to break up with his girlfriend. Which of the following factors might encourage him to stay?

• A) If his comparison level for alternatives is high
• B) If his comparison level is high
• C) If his investment is high
• D) If his costs for staying are high

---

Definitions:

Net Loss

This occurs when a company's expenses exceed its revenues during a specific period of time, leading to a negative net income.

Ending Capital

The amount of capital a company or individual has at the end of a financial period, after all transactions have been accounted for.

Income Summary

An account in the general ledger used to transfer the balances of temporary accounts to permanent accounts at the end of an accounting period.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to generate income or wealth.