Which of the Following Accounts Does Cash Basis Accounting Ignore

question 24

Multiple Choice

Which of the following accounts does cash basis accounting ignore?

• A)Payables
• B)Revenue
• C)Cash
• D)Expenses

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Definitions:

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often oversimplifying the causes and effects.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Anchoring Heuristic

A cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered when making decisions.

Historical Precedent

Historical precedent refers to decisions or actions taken in the past that serve as a model or guide for how similar events are handled in the future.