Which of the Following Is an Example of the "Taking

question 32

Multiple Choice

Which of the following is an example of the "taking mental shortcuts" bias in thinking described in your text?

• A) Jack thinks he got an A on his essay because he is a great writer,but got a D on his communications project because the instructions were too confusing.
• B) Rose overestimates how often cruise ships sink because she can vividly remember the sinking of the Titanic.
• C) Wade believes that he will be funnier on stage if he eats fried chicken before he goes on stage to perform.
• D) Michael thinks that he must wear his lucky gym shorts in order to win the game.

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Definitions:

Capital Assets

Long-term assets acquired for use in a business, intended for the purpose of earning income and not for resale.

Collections

The process of pursuing payments of debts owed by individuals or businesses to creditors or service providers.

Public Exhibition

An event where works of art, new products, or other items of interest are displayed to the general public.

Capitalizing

Capitalizing is the process of recording a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.