The Equity Theory Focuses on Identifying the Types of Goals

question 62

True/False

The equity theory focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects.

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Definitions:

Revenues and Gains

Income generated from normal business operations and other positive financial events.

Cash Flows

The complete sum of funds flowing into and leaving a business, significantly impacting its liquidity.

Net Income

is the total earnings of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.

Accrual Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.