Which of the Following Statement About Biases Is True

question 14

Multiple Choice

Which of the following statement about biases is true?

• A) Biases can affect management accounting information, but not financial accounting information
• B) Managers cannot work toward eliminating their biases
• C) Biases reduce the quality of decisions
• D) Biased managers are more likely to explore alternatives before making a decision

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Definitions:

Financial Assets

Assets that derive value from a contractual claim, such as cash, stocks, bonds, and bank deposits.

Debt Repayment

The act of paying back money previously borrowed from lenders, which may include both the principal amount and interest.

Financial Statements

Written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.

Public Sector Entities

Organizations that are part of the government sector, including departments, agencies, and various publicly funded operations.