Andrew, Who Is 3 Years Old, Is Shown a Box

question 42

Multiple Choice

Andrew, who is 3 years old, is shown a box with candy on it and asked to guess what is in the box. Andrew responds "candy." The box is then opened and he is shown that it actually contains crayons, not candy. When Andrew is asked how his 3-year-old friend will respond when asked what is in the same box, what will Andrew say?

• A) "He will think it's candy."
• B) "He will not know."
• C) "He will think it's crayons."
• D) "He will think it's crayons and candy."

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Definitions:

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The amount by which expenses exceed revenues during a specific period, indicating a financial loss.

Income Statement Columns

The arrangement in the income statement that categorizes financial data, such as revenues, expenses, and net income, to convey a company's financial performance over a period.

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Sections in a trial balance where debit and credit account balances are listed side by side to ensure they are equal.