Answer the following statements true (T) or false (F)
1. Equity theory focuses on how fairly employees think they are being treated compared to others.
2. Inputs, outputs, and comparisons are the essential elements in goal-setting theory.
3. In equity theory, employees are most motivated to make a change under circumstances in which they perceive all parties to have the same ratios.
4. According to equity theory, increasing their inputs is one way that employees deal with perceptions of inequity.
1. TRUE
Equity theory focuses on employee perceptions as to how fairly they think they are being treated compared with others.
2. FALSE
The key elements in equity theory are inputs, outputs (rewards), and comparisons
3. FALSE
In equity theory, when employees compare the ratio of their inputs and outputs (rewards) with those of others, whether coworkers within the organization or even other people in similar jobs outside it, they then make a judgment about fairness. Either they perceive there is equity, so they are satisfied with the ratio and they don't change their behavior, or they perceive there is inequity, and they feel resentful and act to change the inequity.
4. FALSE
Employees who feel they are being underrewarded will respond to the perceived inequity in one or more negative ways, as by reducing their inputs, trying to change the outputs or rewards they receive, distorting the inequity, changing the object of comparison, or leaving the situation.
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Advantages of using historical cost as the basis of valuation of property, plant, and equipment include all of the following except
A) it is representationally faithful. B) gains and losses from holding the asset are recognized in the period of value change. C) cost equals the fair market value at the date of acquisition. D) it is consistent with the valuation of many other assets and liabilities.
Define ERP
What was the purpose of SATTA?
a. To develop standards for accounting b. To determine an appropriate valuation system for financial statements c. To provide a survey of the current financial accounting literature and a statement of where the profession stood relative to accounting theory d. To develop metatheoretical guidelines for the evaluation of accounting information and valuation systems
Wyatt Company paid $57,000 in January, Year 2 for salaries that had been earned by employees in December, Year 1. Indicate whether each of the following statements about financial statement effects of the January, Year 2 event is true or false.________ a) The income statement for Year 2 is not affected because the salaries expense had been recognized at the end of December, Year 1.________ b) Cash flows from operating activities decreased on the Year 2 statement of cash flows.________ c) Payment of the salaries in Year 2 increased a liability.________ d) The Year 2 statement of changes in stockholders' equity would not be affected because the salaries expense had been recognized at the end of December, Year 1.________ e) Both assets and equity decreased in Year 2 as a result of this
transaction. What will be an ideal response?