Valuing Assets at Their Fair Value Rather Than at Their

question 192

Multiple Choice

Valuing assets at their fair value rather than at their cost is inconsistent with the

• A)economic entity assumption.
• B)historical cost principle.
• C)periodicity assumption.
• D)full disclosure principles.

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Definitions:

Dispositional Attributions

Explanations for behavior that ascribe actions to inherent personality traits rather than external situations or circumstances.

Situational Attributions

The process of explaining one's own behavior or the behavior of others by attributing it to external circumstances or situational factors.

Actor-observer Bias

A tendency to attribute one's own actions to external factors while attributing others' actions to their internal traits or dispositions.

Causal Dimensions

Attributes or aspects of a cause that affect individuals' perceptions and judgments about the cause, such as its controllability or stability.