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Companies May Deviate from General Accounting Practices by Using Industry

question 78

True/False

Companies may deviate from general accounting practices by using industry specific procedures when these procedures are better suited to their industry.


Definitions:

Fundamental Attribution Error

A cognitive bias where people overly attribute others' actions to their personality or disposition rather than to external factors.

Situational Influences

The impact of external environmental factors on an individual's behavior, choices, and attitudes at a given moment.

Dispositional Influences

Characteristics or traits of individuals that influence their behaviors and attitudes.

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situations when explaining other peoples' behaviors.

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