The Following Events All Occurred After the Balance Sheet Date

question 87

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) Uninsured inventory valued at $100 000 on 30 June 2012 was destroyed in a fire on 5 July 2012.
• B) Investments recorded at cost ($100 000) were sold on 2 July 2012 for $60 000.
• 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) A customer declared bankruptcy on 31 July 2012.

Understand the key terms and concepts related to mortgages.

Identify the roles and implications of different types of mortgages.

Recognize the advantages of renting and the financial considerations it entails.

Understand the concept of equity and how it can be built in home ownership.

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Definitions:

Rutabagas

A root vegetable with a taste that is a mixture of cabbage and turnip, commonly used in cooking.

Broccoli

A green vegetable with a large flowering head, stalk, and small associated leaves, often eaten for its nutritional qualities.

Marginal Utility per Dollar

The additional satisfaction or utility gained from consuming one more unit of a good or service, divided by its cost.

Potatoes

Tubers of the plant Solanum tuberosum, widely used as a staple food item, grown in various parts of the world.