The tendency of naive investors to buy high (after prices have risen for several periods) and sell low (after prices have dropped for several periods) can be explained by the behavioral tendency known as anchoring.
<h3>What does anchoring in purchasing behavior mean?</h3>
A behavioral finance heuristic known as "anchoring" refers to the unconscious use of unimportant information, such as the price at which a security was purchased, as a fixed reference point (or "anchor") for making decisions about that security in the future.
The cognitive bias known as "anchoring" occurs when the mere existence of an initial number has an outsized impact on later decision-making. The TV's exorbitant cost acts as an anchor that encourages buyers to spend more money than they intend to. By announcing a lower price after stating a price, the anchoring effect in making purchase decision is activated. Customers will view the higher price as being more comparable to the original, lower price than the alternative prices being provided.
To learn more about purchase decision, visit:
brainly.com/question/26517026
#SPJ1
 
        
             
        
        
        
Answer:
Debit cash $7800 
Credit unearned revenue $7800 
Explanation:
The amount of $7800 was received in cash on October 1. Therefore, the cash account will be debited with the $7800 received.
The corresponding credit entry of $7800 will be to the unearned revenue account since the revenue has not been earned. Revenue will be earned at the end of each month of the lease. This account will subsequently debited each time the revenue is earned i.e at the end of each lease month.
 
        
             
        
        
        
Answer:
$1,995
Explanation:
Using the FIFO inventory method, the amount allocated to ending inventory in June would be ;
= $1,539 + [($1,824 ÷ 228) × (228 - 171)]
= $1,539 + ($8) × (57)
= $1,539 + $456
= $1,995
Therefore, the amount allocated to June ending inventory, using FIFO inventory method is $1,995
 
        
             
        
        
        
Answer: B. b.Only III is true. 
Explanation:
It should be noted that in order to qualify as an alimony, then the cash payments have to stop when the payer dies.
It should be noted that the $50,000 annual payments that are to be made to Andrea or her estate if she dies before the end of the eight years doesn't qualify as alimony.
Therefore, the correct option will be that If Travis sells the stocks for $900,000, he must recognize a $400,000 gain. 
Therefore, only III is correct.
 
        
             
        
        
        
Answer:
 Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.
Explanation:
Depreciation expense             777  
Accumulate depreciation           777
  
Insurance expense             975  
Prepaid Insurance                             975
  
Interest expense                     470  
Notes ´payable                              470
  
Expense supllies                  1974  
Supplies                                            1974
  
Unearned revenue       2350  
Revenue                                           2350