Machinery Having a Four-Year Useful Life and a Residual Value

question 122

True/False

Machinery having a four-year useful life and a residual value of $5,000 was acquired for $65,000 cash on June 28.Using the nearest whole month method,the company would recognize $11,250 for depreciation expense at the end of the first year,December 31.

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Definitions:

Outgroup Homogeneity Bias

Outgroup Homogeneity Bias is the tendency to view individuals from outside one’s own group as more similar to each other than those within the group, leading to stereotypical thinking.

Group Attribution Error

The tendency to make broad stereotypical judgments about a group based on the actions of a few individuals within that group.

Ultimate Attribution Error

A bias in which negative behaviors by out-group members are attributed to their character, while similar actions by in-group members are attributed to situational factors.

Law Of Small Numbers

A cognitive bias where people infer broader conclusions from a small set of observations than is statistically warranted.