A Client Has a Calendar Year-End

question 36

Multiple Choice

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

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

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Definitions:

Resource Mobilization

Resource mobilization is the process of gathering the necessary resources, such as funds, volunteers, and information, for a group or movement to achieve its goals.

Breakdown Theory

A sociological theory that explains social movements as the collective response of individuals to structural weakness, disruption, or strain in society.

Resource Mobilization Theory

A theory in social movements suggesting that the success of social movements depends on their ability to gather resources, such as time, money, and organizational skills.

Frame Alignment Theory

A sociological theory that explains how social movements create shared understandings and alignments to mobilize and sustain participant involvement.