Which of the Following Is True for Accounting for a Troubled

question 66

Multiple Choice

Which of the following is true for accounting for a troubled debt restructuring by a modification of terms by the debtor?

• A) If undiscounted cash flows after restructuring are greater than carrying value of the debt before restructuring, recognize a gain.
• B) If undiscouraged cash flows after restructuring are greater than carrying value of the debt before restructuring, recognize no gain and impute new interest rate.
• C) If present value of cash flows after restructuring is greater than carrying value of the debt before restructuring, recognize a gain.
• D) If undiscouraged cash flows after restructuring are less than carrying value of the debt before restructuring, recognize NO gain and impute new interest rate.

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Definitions:

Behavioral Tendencies

Behavioral tendencies refer to predictable patterns of behavior and reaction that individuals typically exhibit.

Brain Structures

The physical parts and anatomical areas of the brain, each with specific functions.

Brain Arousal

The state of being physiologically alert and responsive to stimuli.

Biology

The scientific study of life and living organisms, including their structure, function, growth, evolution, distribution, and taxonomy.