An Expense

question 81

Multiple Choice

An expense

• A)decreases assets and liabilities.
• B)decreases shareholders' equity.
• C)has no effect on shareholders' equity.
• D)increases assets and decreases shareholder' equity.

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Definitions:

Status Quo Bias

A cognitive bias favoring the existing state of affairs or the current baseline (the "status quo"), often leading to resistance against change.

Risk Aversion

A behavioral trait or tendency to avoid taking risks, preferring options that are perceived as safer or have more predictable outcomes.

Error Management Theory

A theory that suggests humans have evolved biases in judgment and decision-making processes to minimize the cost of errors in uncertain situations, favoring the less costly error.

Enthusiasm

Intense and eager enjoyment, interest, or approval.