Which of the Following Material After Balance Sheet Date Events

question 2

Multiple Choice

Which of the following material after balance sheet date events is a non-adjusting event?

• A) Major disposal of assets before the reporting date.
• B) Expropriation of assets by government before the reporting date.
• C) Issue of preference shares shortly after the reporting date.
• D) Settlement before authorisation date of the financial report of a lawsuit filed by a customer three years ago.
• E) None of the given answers.

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Definitions:

Expected Gain

The anticipated positive return or benefit from an investment or action, often calculated as an average of possible outcomes.

Negative Return

A loss incurred from an investment where the total costs exceed the total revenues.

Social Impact

The effect of an activity on the social fabric of the community and well-being of individuals and families.

Energy Consumption

The amount of energy consumed by business processes or systems, often measured in kilowatt-hours (kWh) or megajoules.