A Company Invests Excess Cash in a Certificate of Deposit

question 144

True/False

A company invests excess cash in a certificate of deposit.At the end of an accounting period before the CD matures,the company will recognize interest expense.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.

Individualism

A cultural or philosophical outlook that emphasizes the moral worth of the individual and the importance of independence and self-reliance.

Collectivism

A cultural value that emphasizes the importance of groups and collective action over individual achievement or identity.

Actor-Observer Effect

A social psychology phenomenon where people tend to attribute their own actions to situational factors, but others' actions to their personality or character.