Which of the Following Material After Reporting Date Events Is

question 44

Multiple Choice

Which of the following material after reporting date events is considered an adjusting event?

• A) settlement after reporting date of a court case that confirms that the entity has a present obligation on reporting date
• B) an announcement of a plan to discontinue a business operation
• C) decline in market value of investments between reporting date and the date when the financial report is authorised for issue
• D) settlement after reporting date of a court case that confirms that the entity has a present obligation on reporting date, and decline in market value of investments between reporting date and the date when the financial report is authorised for issue

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Definitions:

Complementary Resources

Natural or manufactured materials that work together with another resource in production to create a product or service.

Productivity

A measure of the efficiency of production, often expressed as the ratio of output to input in the production process.

Marginal Revenue Product

The extra income produced by utilizing an additional unit of a resource or production factor.

MRP Curve

The Marginal Revenue Product curve, representing the additional revenue generated by hiring one more unit of a resource in the factor market.