Ann Byer Is a First-Year Accountant Who Always Did Well

question 25

Multiple Choice

Ann Byer is a first-year accountant who always did well academically. She is asked by her employer to estimate the amount of the accounts receivable balance that might not be paid by the customers. Although she remembers discussing the concept, she cannot quite remember how to go about estimating the amount. She does what she thinks is correct without double-checking. After all, she always received "A"s in class so she must be correct. What type of bias is represented in the above scenario?

• A) availability bias
• B) overconfidence bias
• C) confirmatory bias
• D) groupthink bias

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Definitions:

Ordinary Income

This refers to any income earned through work, interest, dividends, or rental income, subject to standard tax rates.

Dividend Income

Income received from owning shares in a company, paid out from the company's profits.

Charitable Contribution

Financial or material donations given to a charitable organization, often eligible for tax deductions.

C Corporation

A type of business entity that is taxed separately from its owners, and can have an unlimited number of shareholders.