A Broadcasting Company Failed to Make a Year-End Accrual of $400,000

question 138

Multiple Choice

A broadcasting company failed to make a year-end accrual of $400,000 for fines due to a violation of FCC rules. Its tax rate is 30%. As a result of this error, net income was:

• A) Unaffected.
• B) Overstated by $400,000.
• C) Overstated by $280,000.
• D) Overstated by $120,000.

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Definitions:

Milgram Experiment

A landmark psychological study on obedience, demonstrating that people are willing to obey authority figures even when asked to perform actions conflicting with their personal conscience.

Dependent Variable

Variable in an experiment that represents the measurable response or behavior of the subjects in the experiment.

Intensity of Shock

In experimental contexts, this refers to the strength or level of an electric shock administered, often used in research studying learning and behavior.

Group Conformity

The tendency of individuals to adjust their attitudes, opinions, or behaviors to align with the norms of a particular group or society.