Reference no: EM132532674

Question 1: On the 8th of August, 2017, Mason Ltd received creditor invoices worth $60,000 for the provision of administrative services up to 30th of June, 2017. In accordance with AASB 110 Events after the Reporting Date, the appropriate treatment regarding the invoices is:

A. disclosure as a note to the financial statements, as it is an adjusting event;

B. to adjust the financial statements. Specifically, DR Administrative Services Expense $60,000, CR Accounts Payable $60,000.

C. disclosure as a note to the financial statements, as it is a non-adjusting event;

D. to adjust the financial statements. Specifically, DR Accounts Payable $60,000 CR Administrative Services Expense $60,000;