A Company Is Uncertain Whether a Complex Transaction Should Be

question 82

True/False

A company is uncertain whether a complex transaction should be recorded as a gain or loss.Under the conservatism principle,it should choose to treat it as a loss.

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Definitions:

Traumatic Amnesia

Memory loss following a traumatic event, where the individual may be unable to recall important personal information or details of the trauma.

Repression

A defense mechanism in psychoanalytic theory where unwanted or distressing thoughts and memories are unconsciously pushed out of conscious awareness.

Anterograde Amnesia

A memory deficit suffered after some kinds of brain damage, in which the patient seems unable to form new explicit memories; however, memories acquired before the injury are spared.

Memory Encoding

The process of converting information into a form that allows it to be stored in the brain.