Those Who Use Financial Statements Base Their Opinion About an Economic

question 5

Multiple Choice

Those who use financial statements base their opinion about an economic entity on the:

• A) Financial situation.
• B) Cash generation.
• C) Sales performance.
• D) All of these.

---

Definitions:

Barnum Effect

The tendency to accept vague and general personality descriptions as highly accurate for oneself.

External Locus

A psychological term indicating when individuals believe that external forces or events control their life outcomes, rather than their own efforts.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and failures to external factors.

Introvert

Describes a person who tends to be more focused on internal thoughts and feelings rather than seeking external stimulation.