When the Receiver Accepts the Endorser's Position on an Issue

question 25

Multiple Choice

When the receiver accepts the endorser's position on an issue as his or her own,_____ has occurred.

• A) identification 
• B) externalization 
• C) internalization 
• D) normalization 
• E) compensation

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Definitions:

Discount

A reduction from the full amount or value of a product or service, usually to entice customers or accelerate sales.

Effective Interest Method

An accounting practice for amortizing a bond discount or premium on the basis of effective interest rate, rather than the straightforward straight-line method.

Discount

A reduction applied to the price of goods or services, or the difference between the nominal value of a financial instrument and its lower market price.

Bond Liability

A financial obligation of a company that arises when it issues bonds to raise funds, representing its need to repay the principal and interest to bondholders.