According to Andrea, in the Last Two Decades Temperatures Have

question 43

Multiple Choice

According to Andrea, in the last two decades temperatures have risen at unprecedented rates, and this suggests that human activity has been contributing to global warming. Shimon responded, "No way, the earth is just going through a warming cycle." Andrea said that Shimon's counterargument is not relevant because a global warming cycle occurs over a longer period of time. Which thinking error is Shimon MOST likely making?

• A) Red herring fallacy
• B) Naive realism
• C) Sweeping generalization
• D) Hasty generalization

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Definitions:

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

Reliability

In accounting, it refers to the accuracy and consistency of financial reporting, ensuring that information faithfully represents the entity's financial condition.

Materiality Constraint

An accounting principle that permits ignoring rules following the generally accepted accounting principles (GAAP) if the impact of adhering to them is so insignificant that it would not affect the decision-making process of someone reading the financial statements.

Unusual Gain

Gains that are not expected to recur frequently or regularly, arising from events not considered part of the ordinary activities of a business.