Under the Modified Accrual Basis of Accounting, Gains and Losses

question 14

Multiple Choice

Under the modified accrual basis of accounting, gains and losses on disposal of capital 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:

Reality Monitoring

The process of distinguishing between memories of actual events and those of imagined events.

Source-monitoring Error

A type of memory error where a person incorrectly attributes the source of their information or memories.

Reality-monitoring Error

A cognitive malfunction where an individual has difficulty distinguishing between what is real and what has been imagined or thought.

Proactive Interference

A phenomenon in which old information interferes with the ability to learn or remember new information.