Which One of the Following Statements Is Not True

question 70

Multiple Choice

Which one of the following statements is not true?

• A)The use of the installment method of recognizing revenue is generally unacceptable.
• B)When the installment method of recognizing revenue is in use, operating expenses are not deferred and recognized in the future.
• C)Deferred gross profit should be disclosed as a current liability on the balance sheet.
• D)A company may use the installment method of revenue recognition for a sales transaction that is not an installment sale.

Analyze how people weigh observational vs. statistical information in their choices.

Examine the various systematic mistakes commonly made in personal and economic decisions.

Understand the role and impact of inertia in personal financial decisions.

Explore the implications of fairness and self-interest in economic transactions.

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Definitions:

Operant Conditioning

A learning process in which the frequency of an organism's behavior is modified by reinforcement or punishment.

Positive Reinforcement

A process in operant conditioning where a behavior is followed by a rewarding stimulus, increasing the likelihood of that behavior occurring again.

Cognitive Schema

Mental structures that an individual uses to organize knowledge and guide cognitive processes and behavior.

Stereotype

A common yet rigid and simplistic representation or notion of a specific kind of individual or object.