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rusak2 [61]
3 years ago
13

If the date of an entity's financial statements is December 31, the date of the auditor's report is February 20, and the audit r

eport release date is February 22, which of the following is considered a subsequent event?
A) A significant acquisition that was announced on February 1 and will be finalized on October 1.
B) A court settlement on March 3 related to a case that was pending on December 31.
C) Losses from the devaluation of a foreign currency that became finalized on February 21.
D) The entity's announcement of a major restructuring plan on December 30 that will be implemented during the upcoming year.
Business
1 answer:
d1i1m1o1n [39]3 years ago
3 0

Answer: The correct answer is "A) A significant acquisition that was announced on February 1 and will be finalized on October 1.".

Explanation: A significant acquisition that was announced on February 1 and will be finalized on October 1 is considered a subsequent event

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xxTIMURxx [149]

Answer:

The list or reasons are listed below

Explanation:

<h3>Quantitative factors</h3><h3></h3>
  1. Exchange currency price and local price.
  2. Delivery time (local vs overseas)
  3. Legal requirements for the overseas buy.

<h3>Qualitative factors</h3><h3></h3>
  1. Local quality vs overseas quality.
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6 0
3 years ago
When currency traders move as a herd in the same direction at the same time, such as what occurred when George Soros bet against
Nataly_w [17]

Answer: Bandwagon Effect

Explanation:

The bandwagon effect is simply used to describe a scenario that occurs when people behave in certain ways simply because others are doing the same thing.

In this case, when currency traders move as a herd in the same direction at the same time, such as what occurred when George Soros bet against the British pound, this shows that a bandwagon effect occured.

4 0
3 years ago
The cost-recovery method of recognizing profit for accounting purposes is permitted if a. collections in the year of sale do not
kramer

Answer:

Correct Answer:

c. there is no reasonable basis for estimating collectibility.

Explanation:

The cost recovery method of revenue recognition is a concept in accounting that refers to a method in which a business does not recognize income related to a sale until the cash collected exceeds the cost of the good or service sold. <em>When a situation present itself where there is no reasonable basis for estimating collectibility, it justifies the use of the cost recovery method of revenue and profit recognition.</em>

6 0
3 years ago
On January 15, 2020, Vern purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the rec
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Answer: $175,000

Explanation:

Vern's depletion deduction for 2020 will be calculated thus:

= (Cost - Salvage value) / (Estimated Number of units × Number of units extracted

= 3500000/500000 × 25000

= 7 × 25000

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Therefore, Vern's depletion deduction for 2020 is $175000

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