When There Are No Objective Criteria and We Feel Uncertain

question 28

Multiple Choice

When there are no objective criteria and we feel uncertain, with whom are we most likely to compare ourselves?

• A) anyone who happens to be available as a standard of comparison.
• B) those who are similar to us on the relevant dimension.
• C) those who are different from us on the relevant dimension. d those who are slightly better than we are on the relevant dimension.

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Definitions:

Petty Cash

Petty cash is a small amount of cash on hand used for covering minor, incidental expenses within a business.

Journal Entry

A record of a business transaction in the accounting journal that shows the accounts and amounts debited and credited.

Merchandise Inventory

Goods a business has acquired to sell to customers but has not yet sold.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.