Answer: Overconfidence bias
Explanation:
The options are:
a. overconfidence bias
b. hindsight bias
c. framing bias
d. escalation of commitment bias
e. sunk-cost bias
Overconfidence bias is when people or organization believe so much in their ability, knowledge, talent, or skills which invariably leads them to believe that they are better than the way they really are. It is an ego belief and can have a dangerous effect.
Ford was slow to recall vehicles to fix a possible carbon monoxide leak due to overconfidence bias as they believe that they are a force to be reckoned with and can't make such mistakes.
Answer:
a. Income Tax Expense (Dr.) $298,000
Deferred Tax (Dr.) $30,000
Income Tax Payable (Cr.) $328,000
Explanation:
b. Income Tax expense (Dr.) $30,000
Allowance to reduce deferred tax value to NRV (Cr.) $30,000
Income tax payable is calculated based on tax rate of 40%.
$820,000 * 40% = $382,000
<span>This behavior trend where a consumer spends money on homes to make it pleasurable environment is called as cocooning. Cocooning means staying in a protective and comfortable way or place. It even means hiding yourself from real world which may not always be a ideal place.</span>
Answer: the correct answer is A. $500
Explanation:
Amount realized is the amount received from the sale of an asset. The money received for Roberta is $500.
If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)
