"I Don't Know Why We Do It,but We've Always Done

question 30

Multiple Choice

"I don't know why we do it,but we've always done it that way,and it's always worked,so we'll continue to do it that way." This statement is an example of the:

• A)appeals to authority fallacy.
• B)gambler's fallacy.
• C)sunk cost fallacy.
• D)appeals to tradition fallacy.

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Definitions:

Purchasing Supplies

The process of acquiring the goods and materials a company needs to operate.

Increases Liabilities

Refers to events or transactions that result in a rise in the amounts owed by a company, such as taking on new loans or issuing bonds.

Decreases Equity

Activities or transactions that reduce the owner's equity in a company, often through expenses, losses, or distributions to owners.

Earned Revenue

Earned revenue is income a company generates from its business activities, such as sales of goods or services, indicating work completed and value provided to customers.