A Non-Adjusting Event Is One That Occurs

question 31

Multiple Choice

A non-adjusting event is one that occurs:

• A) After the reporting date.
• B) After the auditor has signed the audit report.
• C) After the completion of the financial reports.
• D) After the financial statements have been distributed.
• E) None of the given answers.

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Definitions:

Widespread Misstatements

False or misleading statements that are not isolated incidents but occur on a broad scale.

Family Resemblance Test

A legal test applied to determine whether a new financial instrument should be classified as a security under U.S. law.

Reves v. Ernst & Young

A significant court case that established a test for determining whether a transaction qualifies as a security under the securities laws.

Promissory Notes

Written promises to pay a specified sum of money to a certain entity or person at a specified time or on demand.