Discovering a Major Problem at Work, Doug Called Joan and Discussed

question 170

Multiple Choice

Discovering a major problem at work, Doug called Joan and discussed the problem with her at length. A few minutes later, his coworker Latesha called him, and Doug told Latesha about the problem. Later, Doug told a friend that Joan had said that fixing the problem would cost $10,000. But later when he looked at his handwritten notes of the two phone conversations, Doug discovered that Latesha, not Joan, had actually made the remark. The contradiction between what really happened and Doug's memory can best be explained by:

• A)source confusion.
• B)imagination inflation.
• C)the context effect.
• D)anterograde amnesia.

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Definitions:

Purchases Returns and Allowances

Refers to a reduction in the cost of purchases due to items being returned or allowances provided by the seller for damaged or unsatisfactory goods.

Merchandise Inventory

Goods that a company holds for the purpose of sale to customers in the ordinary course of business.

Merchandise Inventory

Goods or products that a company holds for the main purpose of selling them to customers.

Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company's financial position, listing assets, liabilities, and shareholders' equity at a specific point in time.