You Graduated from University Two Years Ago and Began Working

question 198

Multiple Choice

You graduated from University two years ago and began working at Dingo Electronics.You have received good performance evaluations and a raise.You just found out that a recent college graduate with no experience has been hired for a similar position in another company at a higher salary than you are now making. In this example,your referent comparison for equity theory is termed:

• A)self-inside
• B)self-outside
• C)other-outside
• D)other-inside

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Definitions:

Credits

In accounting, credits refer to the side of an account that decreases assets or increases liabilities and equity.

Working Capital

The amount of a company's current assets minus its current liabilities, indicating the short-term liquidity position of the company.

Current Liabilities

Obligations or debts that a company is expected to pay off within one year or within its operating cycle, whichever is longer.

Current Assets

These are short-term assets likely to be converted into cash, utilized, or sold within the business cycle or a year.