A Confusion of One Word or Phrase for Another That

question 33

Multiple Choice

A confusion of one word or phrase for another that sounds similar to it is known as a(n)

• A)bafflegab.
• B)allness.
• C)lack of precision.
• D)malapropism.

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Definitions:

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to its market value or fair value.

Fair Values

The estimated market value of an asset or liability, reflecting the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Collateralized Loan

A loan that is secured by collateral, assets that the lender can seize if the borrower fails to repay the loan.

Prepaid Interest

The amount of interest that is paid in advance of the period to which it relates, often associated with loans or mortgages.