In Making Decisions, People Tend to Focus on Examples That

question 105

Multiple Choice

In making decisions, people tend to focus on examples that confirm their judgments and ignore instances that do not. This process often leads to

• A)overconfidence.
• B)overbearing behavior.
• C)divergent thinking.
• D)availability heuristic.

Recognize and categorize different types of liabilities on a classified balance sheet.

Calculate and interpret the current ratio and its implications for a business’s short-term financial health.

Understand the accounting cycle and the steps involved from journalizing transactions to preparing post-closing trial balance.

Distinguish between permanent (real) and temporary (nominal) accounts and their treatment in closing processes.