Which One of the Following Statements About the Application And/or

question 133

Multiple Choice

Which one of the following statements about the application and/or implications of equity theory is false?

• A) What may seem fair and equitable to a team leader might be perceived as unfair and inequitable by a team member after comparisons are made with other team members.
• B) Feelings of inequity are determined solely by the individual's interpretation of the situation.
• C) People who feel they are overpaid tend to decrease the quantity or quality of their work, whereas people who feel they are underpaid tend to increase the quantity or quality of their work.
• D) People are less comfortable when they are under-rewarded than when they are over-rewarded.
• E) In collectivist cultures, people seem to be more concerned about equality than equity.

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Definitions:

Expected Life

The estimated duration over which an asset is anticipated to be usable for its intended purpose, often affecting depreciation calculations.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the employer.

Salaries Expense

An expense recorded to represent wages or salaries paid to employees.

Salaries Payable

The liability account that contains the amounts of any salaries owed to employees, which have not yet been paid.