Vans Purchased 40,000 Shares of Skechers Common Stock for $232,000

question 25

Multiple Choice

Vans purchased 40,000 shares of Skechers common stock for $232,000.This represents 40% of the outstanding stock.The entry to record the transaction includes a:

• A)Debit to Long-Term Investments for $92,800.
• B)Debit to Long-Term Investments for $232,000.
• C)Credit to Long-Term Investments for $92,800.
• D)Credit to Long-Term Investments for $232,000.
• E)Debit to Long-Term Investment for $40,000.

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Definitions:

Bandura

A psychologist known for his work on social learning theory, which emphasizes the importance of observing, modeling, and imitating the behaviors, attitudes, and emotional reactions of others.

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism.

Cognitive Theory

A psychological approach that emphasizes mental processes such as perception, memory, and problem-solving as central to understanding behavior.

Information-Processing Approach

The information-processing approach is a cognitive framework that examines how humans encode, process, store, and retrieve information, similar to the operations of a computer.