Illusion of Invulnerability, Illusion of Morality, and Illusion of Unanimity

question 195

Multiple Choice

Illusion of invulnerability, illusion of morality, and illusion of unanimity are all characteristics of

• A)hindsight.
• B)risky shift.
• C)groupthink.
• D)maximization.
• E)confirmation bias.

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Definitions:

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the U.S.

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts at the time of purchase.

Perpetual Inventory System

An accounting technique that utilizes computerized point-of-sale systems and enterprise asset management software to immediately record inventory transactions upon sale or purchase.