When GM Continued with a Cost Cutting Strategy That Streamlined

question 69

Multiple Choice

When GM continued with a cost cutting strategy that streamlined their operations and focused on SUVs and trucks while losing 82 billion dollars they most likely reflected:

• A) risk aversion.
• B) escalation of commitment.
• C) entrapment.
• D) the gambler's fallacy.

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Definitions:

Normal Balance

The side of an account (debit or credit) that is expected to increase; for assets and expenses, it’s debit; for liabilities, equity, and revenue, it's credit.

Financial Statement

A financial statement is a formal record of the financial activities and position of a business, person, or other entity.

Permanent/Temporary

Categories representing either enduring, long-term attributes or conditions, or those that are short-lived and transient.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries have been made, ensuring that debits equal credits.