Which of the Following Best Demonstrates an "Informed Judgment" as the Term

question 31

Multiple Choice

Which of the following best demonstrates an "informed judgment" as the term is used in the a. American Accounting Association's definition of accounting?

• A) Deciding whether to debit or credit an account.
• B) Completing the steps in the accounting cycle.
• C) Choosing between borrowing money and issuing capital stock.
• D) Listing the elements of financial statements.

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Definitions:

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Groupthink

A psychological phenomenon where the cohesion of the group becomes more important than considering facts realistically, leading to poor decisions.

Suppress Disagreement

The act of deliberately preventing or reducing the expression of differing opinions or conflicts.

Harmony

A pleasing combination or arrangement of different things, often referring to music, but also applicable to social and personal contexts.