A(n)________ Occurs When Decision Makers Think They Know More Than

question 142

Multiple Choice

A(n) ________ occurs when decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance.

• A)hindsight bias
• B)confirmation bias
• C)overconfidence bias
• D)self-serving bias

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Definitions:

Revenue Recognition

The accounting principle that revenue should be recorded when earned, regardless of when payment is received, ensuring accurate financial reporting.

Period Of Sale

The time period between when a product is listed for sale and when it is actually sold.

Partial Billings

Invoicing method where a customer is billed incrementally for partially completed work, often used in long-term projects.

Completed-Contract Method

An accounting technique where revenue and expenses of a long-term contract are recorded only when the project is completed.