The Status Quo Bias Is Different from the Omission Bias

question 70

Multiple Choice

The status quo bias is different from the omission bias in that the former is about making decisions that ____, while the latter is about making decisions that ____.

• A) keep things the same; require little effort
• B) keep things the same; avoid risks
• C) are similar to other people's decisions; require little effort
• D) are similar to other people's decisions; avoid risks

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Definitions:

Sales Journal

A specialized accounting journal that records all credit sales transactions of a business.

Subsidiary Ledger

A detailed ledger used to track individual transactions related to a specific account, complementing the general ledger.

General Ledger

The primary accounting record of all financial transactions of a company, organized by accounts, used to prepare financial statements.

Owner Withdraws

Transactions where the owner of a sole proprietorship takes out cash or other assets from the business for personal use.