Ordinarily, an Event Indicating a Material Condition Arising After the Reporting

question 40

Multiple Choice

Ordinarily, an event indicating a material condition arising after the reporting date requires:

• A) adjustment.
• B) adjustment and disclosure.
• C) disclosure.
• D) inclusion as an 'except for'.

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Definitions:

Financial Leverage

Financial leverage refers to the use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the income or capital gain from the assets will exceed the cost of borrowing.