Prior to the Finalisation of the Financial Statements for the Year

question 4

Multiple Choice

Prior to the finalisation of the financial statements for the year ended 30 June 2014, a company experienced a number of material events, including:

In respect of the events listed above, it will be necessary to adjust the financial statements, by way of general journal entries, for:

• A) I, II and III.
• B) II only, and make a note disclosure for I and III.
• C) III only, and make a note disclosure for I and II.
• D) II and III only, and make a note disclosure for I.

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Definitions:

Durable Power

A legal document that grants someone the authority to act on your behalf in legal and financial matters, continuing even if you become incapacitated.

Financial Decisions

The process of making choices regarding the management, investment, and expenditure of money.

Health Deteriorate

A condition where an individual's physical or mental well-being declines over time.

Income Beneficiary

The recipient of the interest or appreciation generated by a trust.