When the Amount of Interest Receivable Decreases During an Accounting

question 2

Multiple Choice

When the amount of interest receivable decreases during an accounting period:

• A) Accrual-basis interest revenue exceeds cash collection from borrowers.
• B) Accrual-basis net income exceeds cash-basis net income.
• C) Accrual-basis interest revenue is less than cash collection from borrowers.
• D) Accrual-basis net income is less than cash-basis net income.

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Definitions:

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus to which the response was originally conditioned.

Higher-order Conditioning

A process in classical conditioning by which a stimulus that's associated with a primary conditioned stimulus also becomes a conditioned stimulus.

Stimulus Discrimination

The ability to differentiate between one stimulus and similar stimuli, ensuring that only the original stimulus triggers the conditioned response in classical conditioning.

Stimulus Discrimination

The ability to differentiate between similar stimuli and respond appropriately to each one.