Finding an Excuse for a Behavior That Is Causing Trouble

question 45

Multiple Choice

Finding an excuse for a behavior that is causing trouble is called:

• A) projection.
• B) rationalization.
• C) repression.
• D) compensation.

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Definitions:

Implicit Rate Of Return

An interest rate that equates the present value of expected future cash flows of an investment to its initial cost.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term the funds necessary to purchase an asset.

Capital Lease

A lease agreement that grants a lessee control over an asset for a substantial portion of its useful life, and is recorded as an asset and liability on the balance sheet.

Lease Rate

The amount charged under a lease agreement for the use of an asset, often expressed as a payment amount per period.