The Following Summary Balance Sheet Account Categories of Sun Company

question 26

Multiple Choice

The following summary balance sheet account categories of Sun Company increased during 2013 by the amounts shown: Assets .....................$178,000 Liabilities ...........................$54,000
Capital Stock ............$120,000 Additional Paid-in Capital ....$12,000
The only change to retained earnings during 2013 was for $26,000 of dividends.What was Sun Company's net income for 2011?

• A) $34,000
• B) $26,000
• C) $18,000
• D) $8,000

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Definitions:

Fundamental Attribution Error

The tendency for observers to attribute other people's behavior to internal or dispositional factors and to downplay situational factors.

Overjustification Effect

The phenomenon where introducing an external incentive for an already internally motivated activity reduces intrinsic motivation.

Materially Breached

The violation of a contract that is so substantial it significantly impacts the contract's purpose, justifying the other party's termination of the agreement.

Audit

An official inspection of an individual's or organization's accounts, typically by an independent body, to ensure accuracy and compliance with laws and regulations.