Virgil Continues to Attribute Sounds and Odd Sensations in His

question 131

Multiple Choice

Virgil continues to attribute sounds and odd sensations in his house to the presence of ghosts although he knows that ghosts are not real. This is an example of:

• A) hindsight bias.
• B) better-than-average effect.
• C) belief perseverance.
• D) pleasure paradox.

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Definitions:

Credit Memo

A paper provided by the seller to the buyer that decreases the amount the buyer must pay to the seller, as per a previously issued invoice.

Note Receivable

A written promise for the payment of a specified amount of money, by a debtor to the lender, with interest, at a future date.

Journalize

The process of recording financial transactions in a journal, which is the first step in the accounting cycle.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and correct.