Kristen Saved for Over a Year So That She Could

question 93

Multiple Choice

Kristen saved for over a year so that she could afford a trip to the Super Bowl if her favorite team won the title. She was excited when her team made it to the Super Bowl, but the actual game was fairly boring and Kristen's favorite team lost. Still, when Kristen got back home, she told all her friends about the great time she had at the game. Kristen's attitude about the game can BEST be explained by

• A)ingratiation theory.
• B)the matching hypothesis.
• C)a self-serving bias.
• D)effort justification.

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Definitions:

Time Period Assumption

An accounting principle that assumes a business's complex financial activities can be divided into shorter, discrete time periods, such as months, quarters, or years.

Specific Time Periods

Specific time periods refer to distinct, defined durations used for financial reporting, planning, and analysis, such as quarters or fiscal years.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively.

Recorded When Incurred

An accounting principle that stipulates expenses should be recognized in the financial statements in the period they are incurred, regardless of when the cash payments are made.