The Tendency to Remember the First Item on a List

question 74

Short Answer

The tendency to remember the first item on a list better than those in the middle of the list is known as the _______ principle.​

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that dictate how financial statements should be reported around the world.

Realized and Unrealized Gains

Profits made from the sale of assets (realized gains) versus increases in the value of assets still held (unrealized gains).

Entity Approach

A method in accounting that treats a business as separate from its owners or stakeholders for reporting and evaluation purposes.