The Tendency for Us to Judge Ourselves in the Most

question 1

Multiple Choice

The tendency for us to judge ourselves in the most generous terms possible is called

• A) confidence.
• B) self-serving bias.
• C) self-fulfilling prophecy.
• D) attribution.

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Definitions:

Straight-Line Depreciation

An accounting method that allocates the cost of a tangible asset evenly over its useful life.

Variable Cost

Outlays that shift in alignment with the quantity of output generated.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument back to their present value, thus reflecting the cost of capital.

Initial Cost

The upfront expense incurred to purchase an asset or start a project, including all relevant expenses.