Identify the True Statement About Illusory Optimism

question 71

Multiple Choice

Identify the true statement about illusory optimism.

• A)It enables people to take sensible precautions in any circumstances.
• B)It increases the level of vulnerability in people.
• C)It encourages people to be more proactive than reactive.
• D)It is otherwise known as the planning fallacy.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

LIFO

An inventory valuation method standing for Last In, First Out, where the most recently produced or acquired items are the first to be sold.

LIFO Perpetual

A method of inventory valuation where the Last In, First Out (LIFO) principle is applied continuously for each transaction, updating inventory balances after each sale or purchase.

Inventory Method

An approach or system used to value and manage inventory, such as FIFO (First In, First Out), LIFO (Last In, First Out), or weighted average cost.