The Tendency to See Complete Letters on a Neon Sign,even

question 200

Multiple Choice

The tendency to see complete letters on a neon sign,even though some of the bulbs are burned out,illustrates the principle of

• A) closure.
• B) relative luminance.
• C) proximity.
• D) continuity.

---

Definitions:

Equipment

Tangible property used in the operations of a business, such as machinery and tools, which are not intended for sale.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease agreements to calculate the present value of minimum lease payments.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Liability

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.