A Client Has a Calendar Year-End

question 42

Multiple Choice

A client has a calendar year-end.Listed below are four events that occurred after December 31.Which of these subsequent events might result in adjustment of the December 31 financial statements?

• A)adoption of accelerated depreciation methods
• B)write-off of a substantial portion of inventory as obsolete
• C)collection of 90% of the accounts receivable existing at December 31
• D)sale of a major subsidiary

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Definitions:

Reorganization

The process of rearranging or restructuring something, often used in the context of businesses or personal life to improve efficiency or manage changes.

Counseling Period

A counseling period refers to a specific timeframe during which an individual receives counseling services to address and work through personal, social, or psychological issues.

Flunitrazepam

A potent sedative drug belonging to the benzodiazepine class, often associated with the treatment of severe insomnia and as a premedication for surgery.

Respiratory Depression

A condition in which breathing becomes dangerously slow or shallow, leading to insufficient oxygen intake and potential carbon dioxide buildup.