When Lori Moved into a New House,the Phone Company Was

question 40

Multiple Choice

When Lori moved into a new house,the phone company was supposed to provide her a phone connection in a month's time.However,a hurricane struck on the day the serviceman was supposed to hook it up.Lori did not get the connection until after several months because of the devastation wrecked by the hurricane.Lori was not mad as she realized that neither did the phone company regulate the weather nor the extent of the destruction caused by the hurricane.Which of the following elements in the attribution theory corresponds best with Lori's realization?

• A) Authority
• B) Stability
• C) Consistency
• D) Control
• E) Locus

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Definitions:

Accrual Basis

An accounting method where revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is exchanged.

Recognizes Revenues

The process of recording revenue in the financial statements when it is earned and realizable, in accordance with the revenue recognition principle.

Expense Recognition Principle

Accounting principle that dictates expenses should be recognized in the period in which they are incurred to generate revenues.

Accounting Period

This is a specific duration of time for which financial statements are prepared to understand and evaluate a company's financial performance.