Hector Works as an Office Assistant for a Small, Five-Person

question 113

Multiple Choice

Hector works as an office assistant for a small, five-person software development start-up. Since it is a relatively new company without extensive resources, Hector is constantly having to deal with a lack of supplies and faulty office equipment. While these problems sometimes get him down, the co-owners of the fledgling company are his friends from college, and he looks forward to seeing them every day. In order to offset his frustration with the sometimes inadequate equipment, Hector instead celebrates the fact that he gets to work in a casual environment with friends. Hector's approach is an example of

• A) emotion-focused cognitive coping.
• B) problem-focused cognitive coping.
• C) secondary appraising.
• D) behavioral coping.
• E) strain mitigation.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, indicating the actual profit earned.

Adjusting

The act of making entries to update the financial statements to more accurately reflect revenues and expenses for a specific reporting period.

Operating Activities

The day-to-day activities of producing and selling goods and/or services, which are reflected in the cash flow statement.

Indirect Method

A way of calculating cash flows in the cash flow statement, where net income is adjusted for changes in non-cash items and working capital.