Match Each Situation to Its Impact (A-C) on the Current

question 190

Multiple Choice

Match each situation to its impact (a-c) on the current year's net income.
-A consignor included merchandise in the hands of the consignee in ending inventory.

• A)Net income for the current year will be overstated.
• B)Net income for the current year will be understated.
• C)There will be no error effect on net income.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, and remember information in a way that confirms one’s preconceptions, leading to statistical errors.

Public Opinion Poll

A method used to gauge public opinion by asking a random sample of people questions on various topics.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype or an example.