Select the Account Types for These Items $\bullet$ Rent Received in Advance

question 57

Multiple Choice

Select the account types for these items:
$\bullet$ Rent received in advance
$\bullet$ Mortgage
$\bullet$ Prepaid expenses
$\bullet$ Rates

• A) Expense, liability, liability, equity
• B) Asset, equity, asset, expense
• C) Liability, liability, asset, expense
• D) Expense, liability, asset, liability

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Definitions:

Representativeness Heuristic

A cognitive shortcut in which the likelihood of an object belonging to a category is evaluated based on how similar it is to a typical object from that category.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks, used in mathematics and computer programming.

Functional Fixedness

A cognitive bias that limits a person's ability to use an object only in the way it is traditionally used, preventing them from solving a problem in a creative manner.

Mental Set

A cognitive bias that limits a person to using an approach that has previously worked, even when a different approach might be more beneficial.