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:

Impulsivity

A tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Alcohol Myopia

A cognitive condition induced by alcohol consumption, characterized by a narrowed focus of attention and impaired judgment.

Intoxicated

A state of being under the influence of substances, such as alcohol or drugs, leading to altered mood, cognition, and motor function.

Ego Depletion

A state where individuals have a diminished capacity to exert self-control or engage in cognitive tasks, due to the depletion of a limited pool of mental resources.