You Place Five Pennies in a Row and Then Take

question 459

Multiple Choice

You place five pennies in a row and then take five more pennies and place them in a row directly below the other, so that the pennies in the two rows are paired. Your five-year-old son tells you that there are the same number of pennies in each row. You then spread out the pennies on the bottom row so that it looks longer. Your son now thinks that the bottom row has more pennies, showing that he lacks

• A)conservation.
• B)object permanence.
• C)assimilation.
• D)egocentrism.

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Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments, which cover interest and principal.

Interest Expense

The cost incurred by an entity for borrowed funds, typically noted on the income statement as a non-operating expense.

Issued

Refers to securities, such as stocks or bonds, that have been made available for sale and have been purchased by investors.

Callable

Describes a financial security (e.g., a bond) that can be redeemed or "called" by the issuer before its maturity date under certain conditions.