George Is Often Told That He Often Dwells on Minor

question 253

Multiple Choice

George is often told that he often dwells on minor, unpleasant details while ignoring the positive elements of a situation. When he does so, George demonstrates the cognitive distortion known as:

• A) mental filtering.
• B) all-or-none thinking.
• C) personalization.
• D) catastrophizing.

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Definitions:

Realized Profit

Earnings that are generated and recorded when assets are sold for a price higher than their purchase cost.

Intercompany Sale

Transactions that occur between two entities within the same corporate group, which are eliminated during consolidation to avoid double-counting in financial statements.

Mark-Up

An amount added to the cost price of goods to cover overhead and profit.

Impairment Loss

The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, necessitating a write-down.