A Helpful Approach in Examining Changes in the Relative Size

question 6

Multiple Choice

A helpful approach in examining changes in the relative size of account balances within a single statement is referred to as

• A)common-size analysis and trend analysis.
• B)vertical analysis and horizontal analysis.
• C)trend analysis and horizontal analysis.
• D)common-size analysis and vertical analysis.

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Definitions:

Unstable Attribution

The belief that an individual's behavior or performance is due to changeable, situational factors rather than fixed traits.

Actor/observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their personality.

Behavioral Explanation

An account that attributes an action or pattern of behavior to learned responses and interactions with the environment.

Self-enhancement

The psychological process of improving one's self-image by focusing on strengths and achievements while minimizing weaknesses and failures.