A Study That Followed Men for 40 Years and Asked

question 36

Multiple Choice

A study that followed men for 40 years and asked them to rate their marital satisfaction at regular intervals found the usual gradual decline in satisfaction over time.However,in a retrospective account after 40 years,the men reported that their marriages had been very satisfying in the beginning,grew gradually less satisfying in the middle years,and then became more satisfying again in recent years (a U-shaped curve) .Their memories of how their satisfaction changed were ________ with the actual satisfaction data collected over the course of their lives due to a ________.

• A) consistent;confirmation bias
• B) consistent;memory bias
• C) inconsistent;memory bias
• D) inconsistent;confirmation bias

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Definitions:

Income Statement Approach

A method of calculating adjustments to income, focusing on items that affect the income statement directly.

Balance Sheet Approach

A method of evaluating or preparing financial statements focusing on the balances of assets, liabilities, and equity at a specific point in time.

Estimating Bad Debts

The process of forecasting the amount of credit sales that are not expected to be collected, to account for potential losses.

Allowance Method

A method of accounting for bad debts that involves estimating and setting aside an allowance for doubtful accounts.