Which of the Following Concepts Is Explicitly Considered by Equity

question 63

Multiple Choice

Which of the following concepts is explicitly considered by equity theory?

• A)Comparison other
• B)Outcome/input ratio
• C)Effort-to-performance expectancy
• D)All of the answers are correct.
• E)Comparison other and outcome/input ratio

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Definitions:

Unrealized Gain

Represents the increase in value of an investment or asset that has not yet been sold for cash.

Commercial Substance

A concept in accounting that a transaction has commercial substance if it significantly changes the economic circumstances of the entities involved.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Fair Value

A valuation method that approximates the amount for which an asset could be bought or sold in a current transaction between participants at arm's length.