Under the Modified Accrual Basis of Accounting, Gains and Losses

Multiple Choice

Under the modified accrual basis of accounting, gains and losses on disposal of capital assets

A) are not recognized.
B) are recognized when the proceeds (cash) of the sale are received (on the installment basis) .
C) are recognized only if there is a gain.
D) are recognized when the sale occurs, regardless of when the cash is collected.