Micky Is Considering a Trip to Las Vegas and Is

question 4

Multiple Choice

Micky is considering a trip to Las Vegas and is trying to decide whether to drive or fly there. The previous week he binge-watched Lost, Sully, and Castaway, all of which featured plane crashes. As a result, he decides to drive to Vegas. As a result, Micky has fallen victim to __________________.

• A) Hindsight bias
• B) Confirmation bias
• C) The availability heuristic
• D) The sunk cost effect
• E) Illusory correlation

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Definitions:

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.

Merchandise

Goods or products that are bought and sold in retail or wholesale in the business.