In the Context of the Basic Beliefs About People, If

question 11

Multiple Choice

In the context of the basic beliefs about people, if we assume that people are inherently bad, ________.

• A) we tend to assume that misbehavior is not a manifestation of character
• B) we believe that misbehavior is a reactive response
• C) we search for causes of misbehavior in experience
• D) we are prone to assume that misbehavior is something within a person that cannot be altered directly

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Definitions:

Cookie Jar Reserves

Accounting practices where companies set aside reserves during good financial periods to smooth out earnings in future, less favorable periods.

Estimated Obligations

The predicted liabilities or commitments a company expects to incur in the future, often found in financial planning and budgetary processes.

Overreserving

Overreserving refers to setting aside more funds or reserves than necessary for anticipated obligations or liabilities, which can affect a company's financial statements by overstating expenses.

Prior Period Adjustment

Adjustments made to a company's financial statements to correct errors or misstatements in previously issued financial reports.