After choosing among several computer server systems, the Director of Information Systems feels very positive about the choice that was made. However, some of this optimism is due to the fact that the Director ignored some of the limitations of the chosen system and unconsciously downplays the importance of the positive features of the rejected systems. The Director of Information Systems is engaging in:.A) confirmation bias. B) impulsive buying. C) escalation of commitment. D) rational maximization. E) rational choice thinking.

The following legal claims exist for m. finger co. identify the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements. 1. m. finger (defendant) estimates that a pending lawsuit could result in damages of $1,250,000; it is reasonably possible that the plaintiff will win the case. an item described in notes to its financial statements. a liability that is recorded. 2. m. finger faces a probable loss on a pending lawsuit; the amount is not reasonably estimable. a liability that is recorded. an item described in notes to its financial statements. 3. m. finger estimates damages in a case at $3,500,000 with a high probability of losing the case. an item described in notes to its financial statements. a liability that is recorded. the amount that m. finger co. should record in its accounting records related to these suits is: