The Tendency to Base Attributions Solely on Behaviour Without Considering

question 16

Multiple Choice

The tendency to base attributions solely on behaviour without considering the situation is called:

• A)projection.
• B)behavioural relevance.
• C)fundamental attribution error.
• D)hedonic relevance.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company is collecting on its credit sales by dividing net credit sales by average accounts receivable.

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or financial statements) is represented as a proportion of the total account.

Common-Size Financial Statement

A financial analysis tool that presents all line items as a percentage of a common base figure, making it easier to compare financial statements of different-sized companies.