Consolidated Financial Statements Are Being Prepared for Behemoth Corporation and Its

question 3

Multiple Choice

Consolidated financial statements are being prepared for Behemoth Corporation and its two wholly-owned subsidiaries that have intercompany loans of $50,000 and intercompany profits of $100,000.How much of these intercompany loans and profits should be eliminated?

• A)intercompany loans − $0;intercompany profits − $0
• B)intercompany loans − $50,000;intercompany profits − $0
• C)intercompany loans − $50,000;intercompany profits − $100,000
• D)intercompany loans − $0;intercompany profits − $100,000

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Definitions:

Habituation

The psychological process of becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Stimulus Generalization

The psychological process by which a response is elicited by stimuli similar to the original stimulus to which the response was conditioned.

Classical Conditioning

A conditioning method in which repeated pairings of two stimuli lead to a response that, though originally elicited by the second stimulus, is eventually elicited by the first stimulus alone.

Little Albert

An early experiment in psychology by John B. Watson and Rosalie Rayner that demonstrated how emotional responses, such as fear, could be conditioned in humans.