Gabriel and Jim Were Involved in a Car Accident and They

question 17

Multiple Choice

Gabriel and Jim were involved in a car accident and they both suffered a broken bone.Gabriel told Jim,"Hey at least we only broke a few bones-we could've died!" Jim's response to Gabriel was "Yes,but I'm now thinking about how I can be a better driver so that I never get in an accident again." Gabriel's statement reflects an) counterfactual and Jim's response reflects an) counterfactual.

• A)lateral; lateral
• B)downward; upward
• C)upward; downward

---

Definitions:

Accounting

The systematic process of recording, summarizing, and analyzing an organization's financial transactions.

GAAP

Generally Accepted Accounting Principles; the common set of accounting standards and procedures used in the U.S.

Accrual Basis

The accrual basis of accounting records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recorded when cash is paid.