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    Financial Accounting Theory
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    Exam 4: Research Methodology and Theories on the Uses of Accounting Information
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    Define the Following Cognitive Biases
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Define the Following Cognitive Biases

Question 13

Question 13

Essay

Define the following cognitive biases:
a. Mental accounting.
b. Biased expectation.
c. Reference dependence.
d. Representativeness heuristic.

Correct Answer:

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a. Mental accounting:
The majority of pe...

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