The Availability Heuristic Is a Strategy in Which

question 57

Multiple Choice

The availability heuristic is a strategy in which

• A)category frequencies tend to be overestimated.
• B)people base their estimates of frequency on how easily they can think of examples of the relevant category.
• C)people judge frequency by referring to their sense of familiarity with the category.
• D)category frequencies are estimated on the basis of schematic knowledge.

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Definitions:

Operating Activities

refer to the primary revenue-generating activities of a business, including production, sales, and provision of services, reflected in its cash flow.

Financing Activities

This refers to transactions and events where cash flows into or out of a company to finance its operations and expansions, such as issuing equity or raising debt.

Company's Own Stock

Shares that were issued and subsequently reacquired by the issuing company, held in the company's treasury and available for various corporate uses.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.