Sleepy Monk Coffee Company Operates a Chain of Retail Coffee

question 146

Multiple Choice

Sleepy Monk Coffee Company operates a chain of retail coffee shops and also sells its signature roasted coffee to local resorts.Which of the following accounting estimates would be most important for Sleepy Monk Coffee Company?

• A)Uncollectible accounts receivable.
• B)Warranty claims.
• C)Depreciable lives for its operating assets.
• D)Sales returns.

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Definitions:

Contiguity

The condition of being in close association or proximity, often used in psychology to describe the closeness in time or space between two stimuli.

Conditioning

An approach to modifying behavior by teaching a subject to connect a favorable behavior with a stimulus that was initially unrelated.

Extinction

In behavioral psychology, the gradual decrease and eventual elimination of a conditioned response when it is no longer reinforced.

Unconditioned Stimulus

A stimulus that naturally triggers a response without the need for prior learning.