Miller and Dollard's Habit Hierarchy

question 116

Multiple Choice

Miller and Dollard's habit hierarchy:

• A) derives from prior conditioning.
• B) is based on classical conditioning.
• C) remains static once formed.
• D) all of the above

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Definitions:

Operating Lease

A contract allowing the use of an asset without transferring ownership rights, typically with shorter terms than a finance lease.

Implicit Interest Rate

This reflects the cost of borrowing, calculated from the lease terms, used to measure the present value of lease payments.

Straight-Line Depreciation

A method of allocating an asset’s cost evenly throughout its useful life.

Lease Classification Error

A lease classification error occurs when a lease is incorrectly categorized, for example, as an operating lease instead of a capital lease, potentially affecting financial statements.