Which of the Following Subsequent Events (Post-Statement of Financial Position

question 56

Multiple Choice

Which of the following subsequent events (post-statement of financial position events) would generally require disclosure in the financial statement notes, but NOT adjustment of the accounts?

• A) retirement of the company president
• B) settlement of a lawsuit when the event that gave rise to the action occurred prior to the statement of financial position date
• C) strike by the company's unionized workers
• D) issue of a significant number of common shares

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Definitions:

Marginal Revenue

The additional revenue that a company gains by selling one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Intertemporal Price Discrimination

Practice of separating consumers with different demand functions into different groups by charging different prices at different points in time.

Coupons

Vouchers or codes that offer a discount on the purchase price of goods or services, usually issued by manufacturers or retailers to stimulate demand.