Steve, Who Really Dislikes Vegetables, Believes That the Vast Majority

question 112

Multiple Choice

Steve, who really dislikes vegetables, believes that the vast majority of his friends also dislike vegetables. Steve's belief BEST illustrates which of the following?

• A) self-serving bias
• B) the false consensus effect
• C) the false uniqueness effect
• D) actor-observer bias

---

Definitions:

External Customers

Individuals or entities that purchase goods or services from a business but are not part of the organization itself.

Revenue Test

A criterion used to determine the recognition of revenue in accounting, which stipulates that revenue can be recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably.

Profit or Loss Test

A method used to determine the effectiveness and efficiency of a business by comparing its profits or losses over a specific period.

Asset Test

A means of determining an individual's or entity's ability to meet its financial obligations by comparing its liquid assets against its current liabilities.