Match Each Statement with the Correct Term Below

question 110

Multiple Choice

Match each statement with the correct term below.
-Annuity

• A)The category of income that includes interest, dividends, and rents.
• B)Income from wages, salaries, and trade or businesses.
• C)Interest income resulting from making an interest-free gift loan of $200,000.
• D)A taxable amount received from a state plan to provide a substitute for an employee's earned income.
• E)A series of equal payments received over equal time periods.
• F)A receipt of cash from a former spouse that is included in gross income.
• G)A payment received from a former spouse that is not included in gross income.
• H)A division of marital assets that does not result in any income recognition.
• I)A sale of property in which at least one payment is received in a tax year after the year of sale
• J)A method of accounting that must be used to recognize income from long-term construction contracts.
• K)A debt instrument that has the interest paid at maturity rather than throughout the life of the debt.

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Definitions:

Spotlight Effect

This refers to the tendency to overestimate how much other people notice about us, especially our appearance and behavior.

Fundamental Attribution

The tendency to overestimate the influence of personality traits and underestimate the influence of situational factors when evaluating someone else's behavior.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, leading to psychological tension and behavior change.

Elaboration Likelihood

A theory in social psychology that suggests there are two routes to attitude change: the central route, which involves careful thought, and the peripheral route, which relies on superficial cues.