Question1: As humans, we are cognitively overloaded and must regularly make decisions when faced with uncertainty. People often rely on heuristics, or mental short-cuts to make decisions. Choose TWOof the following three heuristics to discuss and describe how each might be used to make an accounting, auditing, or investment decision:

i.Representativeness

ii.Availability

iii.Anchoring and Adjustment

Question2: There is an argument that an inherent trade-off exists between relevanceand reliabilityin relation to accounting information.

Discuss in relation to the measurement bases: historical cost and fair value. Draw on your knowledge of an event such as the Global Financial Crisis (GFC) or Enron to demonstrate your understanding.