Which of the Following Transactions Is Consistent with Recognizing Value

question 29

Multiple Choice

Which of the following transactions is consistent with recognizing value changes on the balance sheet and income statement when they are realized in a market transaction?

• A) Selling land at a cost greater than its original purchase price.
• B) Recording an increase in the fair value of investments at year end.
• C) Translating foreign operations accounted for in Yen back to U.S.dollars in order to prepare consolidated financial statements.
• D) Writing down the value of an asset due to obsolescent.

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Definitions:

Past Assumptions

Previous beliefs or ideas assumed to be true without concrete evidence.

Repression

A defense mechanism in psychoanalytic theory in which unpleasant thoughts, memories, or feelings are pushed out of the conscious mind.

Repression

A defense mechanism in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Proactive Interference

The phenomenon where older memories hinder the recall of newly acquired information.