Under the Modified Accrual Basis of Accounting, Gains and Losses

question 41

Multiple Choice

Under the modified accrual basis of accounting, gains and losses on disposal of fixed assets

• A)are not recognized.
• B)are recognized when the proceeds cash of the sale are received on the installment basis.
• C)are recognized only if there is a gain.
• D)are recognized when the sale occurs, regardless of when the cash is collected.

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Definitions:

Theory

Set of assumptions about the likely causes of abnormality and appropriate treatments.

Phenomenon

An observable fact or event, often remarkable or unusual in nature, studied in various scientific fields.

Framework

A basic structure underlying a system, concept, or text that guides its development and analysis.

Benzodiazapines

A class of drugs primarily used for treating anxiety, insomnia, and several other conditions, known for their sedative effects.