Scenario A

question 108

Multiple Choice

Scenario A. Suppose that your employee Umberto has been having trouble with the paperwork he must do for his job. Your goal is for the employee to improve his performance; i.e. decrease his rate of errors. You are considering two approaches:
1. Option 1 is to spend time with Umberto every day helping him with his job. This is an appealing option to Umberto because he appreciates the attention and sees it as a positive reward.
2. Option 2 is to tell Umberto that has now lost his incentive option until his performance improves.
3. Option 3 is to tell Umberto that you are not taking away his incentive option for the coming quarter provided he makes improvements.

-Option 2 in the scenario above is an example of

• A)positive reinforcement.
• B)punishment.
• C)negative reinforcement.
• D)extinction.
• E)none of the above

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Definitions:

Consolidation Adjustments

Journal entries made to eliminate the effects of intercompany transactions when preparing consolidated financial statements.

Temporary Differences

These are differences between the book value of assets and liabilities and their tax values that will result in taxable or deductible amounts in the future.

Depreciable Assets

Long-term assets subject to a reduction in value over time due to usage, wear and tear, or obsolescence.

Deferred Tax Assets

Future tax benefits arising from deductible temporary differences and the carryforward of unused tax credits and losses.