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:

Memory Strategies

Approaches or techniques used to enhance or improve memory performance.

Formal Operational Stage

is the fourth and final stage in Piaget's theory of cognitive development, where individuals develop the ability to think abstractly, reason logically, and use deductive reasoning.

Concrete Operations

A stage in Jean Piaget's theory of cognitive development typically occurring between ages 7 and 11, where children develop logical thinking but still struggle with abstract concepts.

Digit Span Performance

A cognitive test that measures short-term memory capacity by having individuals recall sequences of numbers.