When Weighing a Decision, Kate Places Greater Emphasis on Opinions

question 66

Multiple Choice

When weighing a decision, Kate places greater emphasis on opinions that match her own than she does on opinions offered by others that disagree with her personal point of view. Kate illustrates
Which one of the following?

• A) Frame dependence
• B) Overconfidence
• C) Gambler's fallacy
• D) Confirmation bias
• E) Over-optimism

---

Definitions:

Supplies Expense

Costs recorded as an expense when supplies are used up in the normal course of doing business, not when they are purchased.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the capital belonging to the owners.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate revenue and expenses to the period in which they actually are applicable.

Prepaid Rent

Payments made in advance for rent that is recorded as an asset on the balance sheet until it is expensed over time as it is used.