Punjit Works at a Button-Sorting Factory

question 66

Multiple Choice

Punjit works at a button-sorting factory.He feels bad that he can sort only twenty buttons a minute,when the average worker can sort thirty.To feel better about himself,Punjit compares his performance with Brant,who can sort only ten buttons a minute.This is an example of ____.

• A) downward social comparison
• B) unrealistic optimism
• C) the actor-observer effect
• D) the fundamental attribution error

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Definitions:

Voting Stock

Shares that give the holder the right to vote on company matters.

Book Value

The remaining value of a corporation's assets after subtracting its debts, as noted in the balance sheet.

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Equipment Account

An account on the balance sheet that represents the current value of the equipment owned by a company after adjusting for depreciation and amortization.