Which One of the Following Statements Is Correct About Candler

question 38

Multiple Choice

Which one of the following statements is correct about Candler v Crane, Christmas & Co?

• A) There was no liability for financial loss.
• B) A special relationship did not exist.
• C) Losses were not foreseeable.
• D) All of the above

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Deferred Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability until the service or product is delivered.

Adjusting Entry

An accounting entry made to update the financial records before financial statements are prepared, ensuring they follow the accrual basis of accounting.

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