A Client Has a Calendar Year- End

Multiple Choice

A client has a calendar year- end. Listed below are four events that occurred after 31 December. Which one of these subsequent events might result in adjustment of the 31 December financial statements?

A) Settlement of a litigation for a different amount from that recorded in the accounts
B) Collection of 90% of the accounts receivable existing at 31 December
C) Adoption of accelerated depreciation methods
D) Sale of a major subsidiary