A Cognitive Bias That Involves Making a Sweeping Judgment About

question 152

Multiple Choice

A cognitive bias that involves making a sweeping judgment about the self on the basis of a single event is known as:

• A)Selective abstraction
• B)Amplification
• C)Catastrophization
• D)Overgeneralization

Know the exceptions to the general rule of using fair value in exchange transactions under GAAP.

Distinguish between capital and operating expenditures for maintaining property, plant, and equipment.

Understand the differing objectives of financial and managerial accounting.

Recognize the hierarchy and authority of various accounting standards and pronouncements.

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Definitions:

Narrow-Minded

Having a limited or inflexible perspective, often unwilling to consider alternative ideas or viewpoints.

Patterns of Behavior

Repeated actions or reactions that occur in a predictable manner, often based on habits, culture, or psychological conditioning.

Reactions

Emotional or behavior responses triggered by external or internal stimuli.

Events

Occurrences or happenings, especially ones of significance, that are planned or unforeseen.