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) adoption of accelerated depreciation methods
C) collection of 90% of the accounts receivable existing at 31 December
D) sale of a major subsidiary