A Summary of Selected Ledger Accounts Appears Below for Alberto's

question 175

Multiple Choice

A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end.

Net income for the period is

• A)$13,000
• B)$33,500
• C)$15,000
• D)$18,500

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Definitions:

AASB 137

A standard issued by the Australian Accounting Standards Board that deals with the accounting for provisions, contingent liabilities, and contingent assets.

Share Buy-backs

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Accounting Standard

Guidelines and rules set by a recognized standard-setting body that dictate how financial transactions and other accounting events should be reported in financial statements.

Share Buy-back

A corporate financial strategy in which a company purchases its own shares from the marketplace, reducing the number of outstanding shares.