Your Uncle, Who Has a Second Home in Bethany Beach

question 58

Multiple Choice

Your uncle, who has a second home in Bethany Beach, Delaware, is planning to sell it in the next few weeks. You are interested in buying this beachside property, so your agent negotiates a price for the house with your uncle's agent. This transaction is an example of:

• A) the cost principle.
• B) the assumption of arm's-length transactions.
• C) the realization principle.
• D) the going concern assumption.

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Definitions:

Evaluation Apprehension

Concern that others are evaluating our behavior.

Social Pressure

The influence exerted by society or a group of people on an individual, encouraging conformity to certain behaviors, norms, or values.

Diffusion of Responsibility

A psychological phenomenon where people are less likely to take action or feel a sense of responsibility in the presence of a large group of people.