Able Industries Has the Following Information Is Related to Its $\bullet$

question 49

Essay

Able Industries has the following information is related to its adjusting entries at the end of December.
$\bullet$ Services have been performed for customers that have not yet been billed or paid totaling $100.
$\bullet$ The office equipment computation for 2010 depreciation amounts to $480.
What is the net effect that the necessary adjusting entries for this information have on net income for Able?
a. $380 increase.
b. $380 decrease.
c. $580 increase.
d. $580 decrease.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.

Availability Heuristic

A cognitive shortcut based on quick examples that pop into one's mind while assessing a particular subject, idea, strategy, or choice.

Acquittal

A legal judgment that a person is not guilty of the crime with which they have been charged.

Representativeness Heuristic

A cognitive shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles available prototypes.