When Decision Makers Fail to Adjust Adequately for Information Because

question 28

Multiple Choice

When decision makers fail to adjust adequately for information because they fixate on initial information they received, they are influenced by ________.

• A)sunk costs error
• B)hindsight bias
• C)availability bias
• D)anchoring bias
• E)selective perception bias

---

Definitions:

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting its loss of value over time.

Withdrawals Account

An account used to record the amounts taken out of a business by its owner(s) for personal use.

Capital Balance

The amount of money invested in a company by its owners or shareholders, represented in the equity section of the balance sheet.

Accounting Period

The span of time at the end of which a company's financial performance is measured and reported.