Match the Terms with the Definitions

question 68

Multiple Choice

Match the terms with the definitions.
-Accounts that are deducted from Sales on the income statement (i.e., Sales Returns and Allowances, Sales Discounts) .

• A)contra-cost accounts
• B)contra-revenue accounts
• C)physical inventory
• D)unearned revenue

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Definitions:

Anchoring

Anchoring is a psychological phenomenon wherein an individual relies too heavily on an initial piece of information, or 'anchor,' to make subsequent decisions.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, which help in making decisions, forming judgments, or solving problems.

Error-Free Decisions

Decisions made without mistakes, achieved through careful analysis, planning, and consideration of all relevant information.

Recognition Heuristics

A cognitive shortcut where a decision is made based on the recognition or familiarity of an option rather than on a detailed comparison or analysis.