If Reported Profits Are Reduced by $6,000 in Year One

question 17

Multiple Choice

If reported profits are reduced by $6,000 in year one because of the operation of conservatism:

• A)profits in later years will be unaffected.
• B)profits in later years must be $5,000 lower.
• C)profits in later years will be $6,000 higher.
• D)none of the above.

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Definitions:

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs, salivation, and the association of stimuli.

Mere Exposure Effect

A psychological phenomenon whereby individuals develop a preference for things merely because they are familiar with them.

Conscious System

Refers to the aspect of the human mind that is aware of self, the environment, and one's own thoughts, feelings, and experiences.

Abstract Categories

Conceptual groups or classifications that do not rely on physical properties but rather on shared qualities or ideas.