Assume That a Company Has a Calendar Year of January

question 70

Multiple Choice

Assume that a company has a calendar year of January 1,2018-December 31,2018.March 15,2019 was the end of the period for gathering information pertaining to the financial statements.The financial statements were authorized for issue on March 24,2019.
What is the cut off point for the "recognition" of transactions and events in a reporting period?

• A)January 1,2018.
• B)March 15,2019.
• C)March 24,2019.
• D)December 31,2018.

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Definitions:

Marginal Utilities

The extra pleasure or benefit derived from consuming one more unit of a product or service.

Hard Candies

Sweet confections made by boiling sugar syrup to a high temperature and then cooling it to form solid candies.

Pocket Money

A small amount of money given to children by their parents as an allowance.

Maximum Utility

The highest level of satisfaction or fulfillment obtainable by an individual or society from their economic activities.