Which of the Following Actions Are Consistent with the Notion

question 60

Multiple Choice

Which of the following actions are consistent with the notion of "prudence"?

• A)deliberate overstatement of expenses to reduce profits.
• B)excessive provisions for warranty expenses.
• C)careful assessment of doubtful debts.
• D)adoption of accelerated depreciation method to reduce profits.
• E)moving forward unrealised sales to increase profits.

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Definitions:

Change Blindness

A perceptual phenomenon where a change in a visual stimulus goes unnoticed by the observer.

Sequential Processing

A method of processing information in a linear, ordered manner, where one step follows another in a sequence.

Parallel Processing

Parallel processing is the ability of the brain to simultaneously process incoming stimuli of differing quality. It's a part of the human information processing system that allows for complex multitasking.

Dual Processing

The principle that our minds operate on two levels simultaneously - a fast, automatic, intuitive level, and a slower, more deliberate, rational level.