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Mice21 [21]
3 years ago
12

A shopper infers that a product must be of high quality because the manufacturer has been in business a long time. Which heurist

ic is this an example of
Business
1 answer:
Rzqust [24]3 years ago
6 0

Answer:

The Compromise effect

Explanation:

Heuristic is a  modelling that explains the two fundamental ways of processing information while making up an opinion.

Data and information can be processed diligently in order to form an opinion which is a more accurate way than the other type known as heuristics .This explains that opinions can also be formed based on just a mere perception of issues or based on the opinion of other people or experts , which in most cases may not give a true representation of the situation at hand.

However , it forms a part of human daily activities and can also be useful in forming the required opinions in the course of daily activities.

One of the effect as seen in the question is bias attitudes or the compromise effect.

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3 years ago
Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.
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Answer: Please see the required journals below:

Mar. 17:

Debit Allowance for doubtful accounts $1,000

Credit Accounts receivable $1,000

July 29:

Debit Cash $1,000

Credit Bad debt recovery (income statement) $1,000

Explanation: On March 17, when $275 was received from Shawn and the remaining balance of $1,000 was written off, the allowance for doubtful accounts has to be debited since the company adopts the allowance method of accounting for uncollectible receivables. Note that the allowance account would have the required buffer to take care of this debit. Similarly, when the recovery was made, cash would be debited then the credit would default to income statement.

3 0
3 years ago
If a company's free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORREC
Oliga [24]

Answer:

The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

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When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.

Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

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