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Why is the retrospective approach conceptually appropriate for changes in accounting policy?
Counterfactual Thinking
The mental process of imagining alternative scenarios and outcomes that could have happened, but didn't.
False Consensus Effect
The tendency to overestimate how much other people share our beliefs, attitudes, and behaviors.
Primacy Effect
The tendency to remember the first items in a series better than the middle or last items, indicating the impact of first impressions.
Statistical Regression
A statistical technique used to determine the relationships between one dependent variable and one or more independent variables.
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