A Client Has a Calendar Year-End

question 118

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:

Mental Rehearsing

The cognitive practice of simulating a task in the mind, enhancing performance and preparation.

Hippocampus

A small, curved formation in the brain that plays an important role in the formation of new memories and is associated with learning and emotions.

Neural Activity

Neural activity refers to the electrical and chemical processes that occur within neurons, facilitating the transmission of signals throughout the nervous system.

Phonemic Encoding

The process of converting sounds into mental representations of the phonemes (distinct units of sound) that make up language, crucial for reading and spelling.