A Client Responds to Bad News Regarding Test Results by Crying

question 26

Multiple Choice

A client responds to bad news regarding test results by crying uncontrollably. What is the term for this response to a stressor?

• A) Adaptation
• B) Homeostasis
• C) Coping mechanism
• D) Defense mechanism

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Definitions:

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its separate net assets.

Recognition

The process of capturing for inclusion in the statement of financial position or statement of profit or loss and other comprehensive income an item that meets the definition of one of the elements of financial statements—an asset, a liability, equity, income, or expenses.

Pre-acquisition Entry

Accounting entries used to adjust the assets and liabilities of companies involved in a merger or acquisition to their fair values at the acquisition date.

Overstating Equity

This occurs when a company reports higher equity values than what is accurate, often due to overvaluing assets or undervaluing liabilities, which can mislead stakeholders about the company's financial health.