Though Jenny Tried in Vain to Reach a Puzzle on the Top

question 137

Multiple Choice

Though Jenny tried in vain to reach a puzzle on the top shelf by standing on a chair, she simply could not reach. Suddenly she realized that by placing a thick catalog on the seat of the chair, she would be high enough to reach the puzzle. Jenny's solution is best explained by which of the following?

• A) her previous history of conditioning
• B) her previous experiences with reaching objects that are out of reach
• C) latent learning
• D) insight

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net tangible assets, representing future economic benefits.

Fair Value

An estimate of the price at which an asset could be bought or sold, or a liability settled, in an orderly transaction between market participants at the measurement date.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence but not total control over the investee.

Deferred Income Tax

An accounting concept that represents the difference between taxes payable and tax expense due to timing differences in recognizing revenues and expenses.