Which of the Following Biases Refers to Individuals Who Tend

question 88

Multiple Choice

Which of the following biases refers to individuals who tend to strongly prefer avoiding losses rather than acquiring gains?

• A) loss leaders
• B) zero-risk bias
• C) self-serving bias
• D) loss aversion
• E) money illusion

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Definitions:

Terms 2/10, N/30

Payment terms indicating a 2% discount if paid within 10 days, otherwise the net amount (total invoice) is due within 30 days.

Debit Memorandum

A document issued by a buyer to a seller indicating a debit made to the seller's account, often due to returned goods or errors in the invoice.

Subsidiary Ledger

A subsidiary ledger is a detailed ledger containing individual accounts with a common characteristic, which is summarized and presented in a single account in the general ledger.