MGC IncReported $50,000 of Net Income for 20x2

question 69

Multiple Choice

MGC Inc.reported $50,000 of net income for 20x2.The following deferrals and accruals were not recorded in the 20x1 and 20x2 adjusting entries: MGC's correct 20x2 income was:

• A) $51,300
• B) $50,500
• C) $49,300
• D) $48,500

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Definitions:

Institutional Theory

A theory on the deeper, more resilient aspects of social structure that considers the processes by which structures, including schemas, rules, norms, and routines, become established as authoritative guidelines for social behavior.

Goal Displacement

A phenomenon where the original objectives of an entity or project are overshadowed by new, sometimes unrelated goals over time.

Task Environment Theory

A concept in organizational behavior that examines external factors that potentially affect an organization's performance, such as competition and regulation.

Resource Dependence

The theory that organizations depend on resources from their environment to survive, which influences their behavior and strategies to obtain those resources.