People Tend to Become Closed Minded When Asked to Find

question 194

Multiple Choice

People tend to become closed minded when asked to find a different use for an object that has a clear purpose.This mind-set is a result of:

• A) mental sets
• B) restructuring
• C) working backward
• D) functional fixedness

---

Definitions:

Amortization Assumption

The accounting practice of gradually writing off the initial cost of an intangible asset over its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on any form of debt over a given period.

Effective Interest Method

An accounting practice used to allocate loan discounts or premiums over the life of the loan, reflecting the financial interest rate more accurately.

Discount Amortization

The process of gradually reducing the discount on bonds payable or notes payable over the life of the debt.