Mike Was Auditing the Accounting Information System of FBN Corporation

question 4

Multiple Choice

Mike was auditing the accounting information system of FBN Corporation. He wanted to select a sample of transactions to verify; rather than considering all the possible choices, he used a sampling method he found easiest in school. Mike's behavior is an example of:

• A) Satisficing.
• B) Bounded rationality.
• C) Relapse error.
• D) Information overload.

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Definitions:

Classical Theory

in economics, refers to a school of thought that emphasizes free markets, the role of competition, and the minimal intervention of government in the economy, foundational to later economic theories.

Wages And Prices

The relationship and dynamics between the compensation paid to labor and the cost of goods and services in an economy.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically reflected by the absence of cyclical unemployment.

Keynes

Relates to John Maynard Keynes, a UK-based economist whose notions significantly altered macroeconomics theory and the financial policies of governments.