You Know That the Computer Lab at School Gets Very

question 26

Multiple Choice

You know that the computer lab at school gets very crowded at about 3:00 p.m. To avoid the crowds, you start going to the computer lab one hour earlier every day. However many students make the same decision, and now the computer lab becomes very crowded at 2:00 p.m. This is an example of the

• A) post hoc, ergo propter hoc fallacy.
• B) ceteris paribus fallacy.
• C) fallacy of division.
• D) fallacy of composition.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those to common stockholders.

Basic Earnings Per Share

A calculation that shows a company's profitability per share of stock by dividing net income by the weighted average number of common shares outstanding.

Weighted Average

Weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a data set, used in accounting for inventory cost.

Accounting Estimates

Approximations made in financial accounting to assign values to transactions or events that cannot be measured precisely, often due to uncertainty or future conditions.