Which of the Following Is True About the Availability Bias

question 9

Multiple Choice

Which of the following is true about the availability bias?

• A) It occurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets.
• B) It occurs when information that is readily available is incorrectly assessed to also be more likely.
• C) It occurs when good outcomes are attributed to personal characteristics, but undesirable outcomes are attributed to external circumstances.
• D) It occurs when mistakes seem obvious after they have already occurred.
• E) It occurs when individuals are more confident in their abilities to predict an event than logic suggests is actually possible.

Understand the treatment of non-cash financing and investing activities in the cash flow statement.

Understand the principles of cash flow statement preparation under both GAAP and IFRS.

Differentiate between operating, investing, and financing activities in the context of cash flow statements.

Identify the effects of specific transactions on cash flow statement categories.

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Definitions:

Credibility

The quality of being trusted and believed in, often judged based on expertise, reliability, and trustworthiness.

Implicit Racist Attitude

An unconscious bias or attitude towards people or groups based on race, not consciously recognized by the individual.

Caucasian Face

Refers to facial features traditionally associated with people of European descent, often discussed in studies of race and perception.

Behavioural

Relating to or concerned with the actions or activities of living organisms; often used in psychology to refer to observable actions as a basis for study.