Rationalization Is

question 27

Multiple Choice

Rationalization is

• A)using self-justifications to explain away unacceptable behavior.
• B)directing unacceptable impulses into socially constructive pursuits.
• C)imposing one's own impulses or wishes onto another.
• D)refusal to recognize a threatening impulse or desire.
• E)transferring unacceptable impulses away from threatening persons toward safer or less threatening objects.

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Definitions:

Amortization Expense

The gradual write-off of the cost of an intangible asset over its useful life.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Indirect Method

A way of preparing the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.