Which of the Following Statement About Biases Is True

question 14

Multiple Choice

Which of the following statement about biases is true?

• A) Biases can affect management accounting information, but not financial accounting information
• B) Managers cannot work toward eliminating their biases
• C) Biases reduce the quality of decisions
• D) Biased managers are more likely to explore alternatives before making a decision

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Definitions:

Store Equipment

Fixed assets such as furniture and machinery used in a store for its operation and not for resale.

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life, reflecting the reduction of value over time.

Non-Current Asset

An asset expected to provide economic benefits beyond one year, such as property, plant, and equipment.

Useful Life

The estimated duration a fixed asset is expected to be productive and functional for a company, impacting depreciation calculations.