Henry's Dog Sparky Heas Been Rolling in Th Mud

question 22

Multiple Choice

Henry's dog Sparky heas been rolling in th mud. Henry must bathe Sparky before the dog gets mud all over the carpet. However, Henry is unable to find the plug for the tub. Sitting on the counter right beside the tub is a fifty-cent piece. In his frustration, Henry fails to see that the coin could be used as an emergency plug for the tub. What happened to Henry?

• A) He took a heuristic approach.
• B) He fell prey to confirmation bias.
• C) He suffered from mental set.
• D) He employed representational thought.

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Definitions:

Adjusting Entry

An accounting entry made into the books of accounts at the end of an accounting period to record any unrecognized income or expenses for that period.

Unearned Rent

Income received in advance for rental periods that have not yet occurred, recognized as a liability until the service period is completed.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Rent Revenue

Income earned from leasing out property or equipment to another party, reported as part of the operating income in the profit and loss statement.