If the Cost of a Major Service on a Motor

question 2

Multiple Choice

If the cost of a major service on a motor vehicle,which did not increased the vehicles' useful life was incorrectly capitalised and added to the carrying amount of the vehicle rather than being expensed:

• A)Expenses would be overstated,fixed assets would be overstated and equity would be understated
• B)Expenses would be understated,fixed assets would be understated and equity would be overstated
• C)Expenses would be understated,fixed assets would be overstated and equity would be understated
• D)Expenses would be understated,fixed assets would be overstated and equity would be overstated

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Definitions:

Foot-In-The-Door

A psychological technique that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Fundamental Attribution Error

The tendency to overestimate personality or dispositional factors and underestimate situational influences when explaining the behavior of others.

Slacking Off

The act of reducing effort or avoiding work altogether.

Cognitive Dissonance

The psychological distress felt when an individual has two or more opposing beliefs, ideas, or values at the same moment.