Cognitive Dissonance Is

question 117

Multiple Choice

Cognitive dissonance is:

• A) a state of tension that occurs when a person simultaneously holds two cognitions that are psychologically inconsistent.
• B) the tendency of members of a group to avoid taking responsibility for their actions because they assume that others will do so.
• C) the tendency for members of a close-knit group to think alike for the sake of harmony and to suppress disagreement.
• D) a belief that a statement is true just because the person has heard it repeated over and over again.

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Definitions:

Equity Method

This accounting approach is applied when an investor holds significant control over an investee, indicating a substantial interest but not full control or majority stake.

Consolidation Entries

Accounting entries used in preparing consolidated financial statements that eliminate transactions between the parent company and its subsidiaries.

Control Premium

An additional amount that a buyer is willing to pay over the current market value of a company to obtain controlling interest.

Consolidate

To combine assets, liabilities, and other financial items of two or more entities into one.