Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 3, Problem 3.3BE
Match Each Cognitive Bias Below with its Description.
| Availability bias | a. A phenomenon that occurs in situations where members of a group, in an attempt to avoid conflict, reach a consensus decision without considering all of the reasonable alternatives. |
| Overconfidence bias |
b. The tendency to be more confident than your abilities and experience level would objectively warrant. |
| Confirmatory bias |
c. The tendency to use the data that is most readily available or most easily recalled to make a decision, as opposed to considering all relevant data. |
| Groupthink bias |
d. The decision maker focuses on one piece of information, weighting it more heavily than other pieces of information. |
| Anchoring bias | e. A decision maker under-weights information that is not consistent with her initial beliefs. |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Describe one professional experience in which you used evidence as the basis for decision making and one experience in which you made a decision without evidence for support.
For each of the situations described, explain how the use of evidence (or the lack of it) impacted the outcome of your decision making. Be specific in terms of positive and negative impacts.
List the common biases and errors in decision-making. Provide suggestions for how to avoid falling into these biases and errors.
For ethical reasons, researchers can begin analyzing data prior to establishing the p-value criteria to be used in
determining whether to accept or reject their null hypothesis.
True
False
Chapter 3 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Does U.S. GAAP require that companies disclose...Ch. 3 - Does IFRS require that companies disclose...Ch. 3 - Prob. 3.5QCh. 3 - Does IFRS require that companies disclose their...Ch. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - What is the Basis for Conclusions and where can...Ch. 3 - Prob. 3.13QCh. 3 - Prob. 3.14QCh. 3 - Prob. 3.1BECh. 3 - Judgment in Accounting for Plant and Equipment....Ch. 3 - Match Each Cognitive Bias Below with its...Ch. 3 - Prob. 3.4BECh. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Codification Research. Referencing Appendix A,...Ch. 3 - Prob. 3.9BECh. 3 - Prob. 3.10BECh. 3 - Exercises E3-1. Accounting Policy Disclosures. To...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. To what entity types...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 1JCCh. 3 - Prob. 2JCCh. 3 - Prob. 1SSCCh. 3 - Prob. 2SSCCh. 3 - Basis for Conclusions Case 1: Judgment and...Ch. 3 - Basis for Conclusions Case 2: Income Statement or...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Theories that attempt to isolate characteristics that differentiate leaders from non-leaders. Select one: a. Trait theories O b. Behavioral theories O c. None of the options O d. Charismatic theoryarrow_forwardWhich of the following types of behavior is noted as the most common or frequent problems being observed by stakeholders? A. Externalizing behavior B. Internalizing behavior C. Inattentive behavior D. Impulsive behaviorarrow_forwardNonearrow_forward
- The way that organizational deviance differs from the other forms of deviance discussed in this book is that, with all the other forms: A.behavior is evaluated by audiences. B.the behavior being evaluated is caused by deviant beliefs. C.a character flaw is detected in the actor by audiences and hence, stigmafollows. D.everyone in the society could be evaluated along the relevant dimension the deviance exemplifies.arrow_forwardHow will management know if one of the hypotheses underlying the balanced scorecard is false?arrow_forwarddiscuss the harmful effects of illusion of control bias to investorsarrow_forward
- Kindly assist on the above two questions. Q1) which of the below is an example of a compensatory decision-making model? a) dominance b)additive weighting C)lexicography d) satisficing Q2) Which of the decision making models below would be best to use if we want to place more importance on one attribute relative relative to other attributes? a) dominance b) lexicography c)Disjunctive resolution d) satisficingarrow_forwardIn our discussion of the KPMG professional judgment framework, we pointed out that biased judgments can be made because of judgment tendencies. One such tendency that was not included in the framework is self-serving bias. Explain what you think this means and how it might influence audit judgment.arrow_forward1. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is: a. relevance. b. reliability. c. understandability. d. materiality. 2. Which of the following is not a major challenge facing the accounting profession: a. Nonfinancial measurements b. Accounting for hard assets. c. Timeliness. d. Forward-looking information.arrow_forward
- Which of the following is not an aspect of action control? Select one: O a. To define objectives O b. To take corrective action O c. To evaluate actual performance O d. To compare actual performance with goalsarrow_forwardWhich of the following statements is true regarding the sufficiency of evidence needed to test an account? a. Evidence sufficiency is a measure of evidence quality. b. Evidence sufficiency is affected by the quality of evidence. c. A relationship does not exist between evidence sufficiency and evidence quality. d. For a specific client, evidence sufficiency will be the same across all accounts.arrow_forward1 Which of the following statements is NOT a characteristie of quantitative research? A. The results taken from a sample can be generalized to the population. B It delivers an in-depth understanding of the problem or study C. It provides a more credible and reliable result. D. Statistical analysis of numerical data. 2. Which statement below illustrates a weakness of quantitative research? A. The responses of the participants are limited to what has been asked and the choices given. B. The researcher's perspective can influence interpretation of results. C. Data gathering takes too much time. D. Low degree of subjectivity 3. Which of the following statements is NOT true about the importance of Quantitative Research? A. helps educators identify ways to improve learming. B. helps improve crop production using safe organic fertilizers. C helns nharmaceutical cnmnanies explore safe and effective medicines D. helps understand victims of domestic violence perception of satisfaction. 4. A…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningBusiness/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
8 Common Investor Biases (And How to Overcome Them); Author: Next Level Life;https://www.youtube.com/watch?v=7btv02RgCzo;License: Standard Youtube License