The Balance of Stockholders' Equity at the Beginning of the Year

question 57

Multiple Choice

The balance of stockholders' equity at the beginning of the year and the end of the year was $50,000 and $60,000, respectively. The company issued no common stock during the year. Dividends were $24,000. What was the net income or loss for the year?

• A) Net income of $84,000
• B) Net loss of $84,000
• C) Net loss of $34,000
• D) Net income of $34,000

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Definitions:

Self-Fulfilling Prophecy

A forecast that becomes a reality because of the mutual influence between how one thinks and acts, leading to its own fulfillment.

Postdecisional Dissonance

The psychological discomfort one feels after making a difficult decision, often leading to regret or rationalization of the choice.

Insufficient Justification Effect

A phenomenon where individuals modify their attitudes or beliefs to align with their actions, especially when those actions lack adequate external justification.

Fundamental Attribution Error

The tendency to overemphasize internal characteristics for someone else's behavior and underemphasize situational factors.