The Following Events All Occurred After the Balance Sheet Date

question 100

Multiple Choice

The following events all occurred after the balance sheet date of 30 June 2012, but prior to the date of the audit report, 15 August 2012. Which one would NOT require an adjustment to the account balances as at 30 June 2012?

• A) Investments recorded at cost ($100 000) were sold on 2 July 2012 for $60 000.
• B) A customer declared bankruptcy on 31 July 2012.
• C) A contingent liability disclosed in the notes at an estimated amount of $100 000 was settled out of court on 15 July 2012 for $125 000.
• D) Uninsured inventory valued at $100 000 on 30 June 2012 was destroyed in a fire on 5 July 2012.

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Definitions:

Equal Rights

The principle that all individuals are entitled to the same rights, opportunities, and protections under the law regardless of race, gender, age, or other characteristics.

Social Economic

The study of the relationship between social behavior and economic activity.

Political Rights

Rights that allow individuals to participate in the political life of their community or nation, including voting and running for office.

Gender Roles

The sets of societal norms dictating what behaviors are considered desirable or appropriate for persons based on their perceived sex.