Which of the Following Business Events Would NOT Be Recorded

question 97

Multiple Choice

Which of the following business events would NOT be recorded in a company's accounting records?

• A)The company signed a contract to provide services in the next accounting period for $125,000.
• B)The company paid a monthly utility bill of $1,000.
• C)The company issued 100 shares of common stock for $75,000.
• D)The company purchased two acres of land for future plant expansion for $600,000.

---

Definitions:

Availability Heuristic

A decision-making heuristic in which our estimates of frequency or probability of events are based on how easy it is to find examples.

Framing Effect

The influence of wording, or the context in which information is presented, on decision making.

Overconfidence

A cognitive bias where an individual’s subjective confidence in their judgments is greater than their objective accuracy.

Chomsky's Hypothesis

A theory suggesting that the ability to learn language is innate, i.e., biologically programmed within humans.