______ effects decision-making when someone decides to continue an unwise investment based on past investments of time, effort, or money.
What will be an ideal response?
Sunk cost bias
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Which one of the following items would be added to the balance per books in a bank reconciliation?
a. Outstanding checks b. Deposit in transit c. Service charges d. Interest on customer note
When using the allowance method, after a company has previously written off an account, ________.
A) the company continues to send monthly statements to the customers whose accounts have been written off B) the company cannot collect from these customers because their accounts have been written off C) when a customer pays on an account that has been written off, the company needs to reverse the write-off to the Allowance for Bad Debts account and then record the receipt of cash D) the company does not need to reestablish the receivable account
All of the following are true for short examples EXCEPT that
a. they support a specific point. b. they are typically no longer than a sentence or two. c. when used in a series they gain power. d. they are known as narratives.
The lower of cost or market rule for inventory valuation is always applied to individual units separately rather than to major categories of inventory or to the entire inventory.
Answer the following statement true (T) or false (F)