Jonas Bought a New Leather Jacket After Saving for Many

question 54

Multiple Choice

Jonas bought a new leather jacket after saving for many months for the luxury purchase.On the first day he went out wearing the new garment,he found a $50 bill on the sidewalk outside of his office.He now refers to the jacket as his "lucky jacket" and believes that it has some magical power to give him good fortune.Jonas's belief in the jacket's cosmic ability is an example of

• A)the availability heuristic.
• B)an illusory correlation.
• C)selective attention.
• D)the falsification principle.

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management.

Sales Revenue

Sales revenue refers to the income received from the sale of goods or services before any costs or expenses are deducted, serving as a primary source of business income.

Retail Inventory Method

An accounting technique used by retailers to estimate inventory costs by applying a consistent gross margin percentage to the retail price of the goods.

Shrinkage

The reduction in inventory mainly due to shoplifting, employee theft, or other errors.