Which of the Following Situations Would Tend to Cause the Most

question 328

Multiple Choice

Which of the following situations would tend to cause the most psychological inconsistency?

• A) Fifi likes cats, Fifi's boyfriend is Tad, Tad dislikes cats.
• B) Fifi dislikes dogs, Fifi's boyfriend is Tad, Tad dislikes dogs.
• C) Rex is a smoker, Rex's girlfriend is Sasha, Sasha is a smoker.
• D) Rex hates fraternities, Rex dislikes Nate, Nate belongs to a fraternity.

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Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the net identifiable assets of the business.

Borrowing Costs

Borrowing Costs are the interest and other costs that an entity incurs in connection with the borrowing of funds.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.

IFRS

A collection of worldwide accounting standards created by the International Accounting Standards Board, known as International Financial Reporting Standards.