Accruals Provide an Attractive and Accessible Financing Source but Affected

question 7

Multiple Choice

Accruals provide an attractive and accessible financing source but affected parties may object to their use as a financing source

• A)they have a high direct annual percentage cost
• B)their availability can change based on the level of business activity
• C)suppliers may revolt if the privilege of using accruals is overused
• D)their continued availability depends on restrictive loan covenants

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Definitions:

Dissonance Levels

A term used to describe the amount of conflict or inconsistency between an individual's beliefs, attitudes, or behaviors, leading to a state of psychological discomfort.

Initial Impressions

The first and quick opinions we form about others upon meeting them, which are often based on their appearance and behavior.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Attributions

Refers to the process by which individuals explain the causes of behavior and events.