A Client Has a Calendar Year-End

question 91

Multiple Choice

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

• A) settlement of a litigation for a different amount from that recorded in the accounts
• B) adoption of accelerated depreciation methods
• C) collection of 90% of the accounts receivable existing at 31 December
• D) sale of a major subsidiary

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Definitions:

Job Classification System

A method of evaluating and categorizing positions within an organization based on duties, responsibilities, and the level of expertise required, often used to determine salary ranges.

Pay Levels

The range of compensation provided to employees, typically categorized into bands or grades based on job roles, responsibilities, and market benchmarks.

Profitability

A measure of the efficiency and financial success of a business, indicated by the amount of profit generated relative to revenue and expenses.

Market Pay

The average amount of compensation given to employees within a specific job market, industry, or geographic area.