When You Blame the Other Person and Assume That the Cause

question 24

Multiple Choice

When you blame the other person and assume that the cause of the problem was something personally controllable rather than something uncontrollable,you are

• A) overgeneralizing.
• B) oversimplifying.
• C) making a fundamental attribution error.
• D) avoiding responsibility.

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Definitions:

Interest Expense

Interest expense is a cost incurred by an entity for borrowed funds, reflected on the income statement.

Effective-Interest Method

A method of calculating the interest expense on a bond that factors in the bond's book value and yield to maturity.

Discounted Bond Issue

The sale of bonds for less than their face value, typically to compensate investors for taking on additional risk or for interest rates being higher than the bond's coupon rate.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the compilation of financial statements in the U.S.