The Availability Bias Is…

question 9

Multiple Choice

The availability bias is…

• A) the tendency to form a conclusion on the basis of all the evidence that exists on an issue.
• B) the tendency to form a conclusion on the basis of only the evidence easily at hand, rather than on the basis of all the evidence.
• C) the tendency to be available to only those from one point of view.
• D) the tendency to overlook easily available evidence.

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Definitions:

Cash Realizable Value

The amount of money that can be received from assets or receivables through normal collection processes.

Allowance Method

A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.

Credit Sales

Sales made by a business where payment is delayed as per agreed terms, allowing the buyer to purchase goods or services on credit.

Allowance for Doubtful Accounts

A financial account used by companies to account for the percentage of accounts receivable that may not be collected due to customer defaults.