Below Is a List of Various Balance Sheet Accounts and Their

question 140

Multiple Choice

Below is a list of various balance sheet accounts and their balances. Debit Credit
$\begin{array}{|l|r|r|}\hline \text { Notes payable-short term } & & \$ 800 \\\hline \text { Salary payable } & & 3,600 \\\hline \text { Notes payable-long term } & & 20,000 \\\hline \text { Accounts payable } & & 2,200 \\\hline \text { Unearned revenue } & & 1,000 \\\hline \text { Interest payable } & & 2,200\\\hline \end{array}$
- What are the total current liabilities that would be shown on the balance sheet?

• A) $29,800
• B) $9,000
• C) $9,800
• D) $6,800

Understand the concept of beta and its relevance in measuring stock risk.

Differentiate between systematic and unsystematic risk.

Evaluate investment opportunities using the concept of underpricing and overpricing relative to the Security Market Line (SML).

Analyze the impact of risk aversion on investment decisions.

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Definitions:

Availability Heuristic

A quick mental approach that depends on the first examples that are thought of when assessing a particular subject, idea, technique, or choice.

Critical Thinking

The ability to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments and solve problems.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Framing Effect

The influence on decision making caused by the way information is presented, rather than the actual information itself.