Which of the Following Material After-Reporting-Date Events Is Not Considered

question 25

Multiple Choice

Which of the following material after-reporting-date events is not considered an adjusting event?

• A) determination after the reporting date of the cost of assets purchased before the reporting date
• B) receipt of information after reporting date indicating that an asset was impaired at reporting date
• C) determination after the reporting date the amount of bonus payment payable to senior executives
• D) destruction of assets due to flood after the reporting date

---

Definitions:

Practical Capacity

The maximum production level that a company can sustain with the current resources and conditions in a realistic manner.

Overapplied Overhead

Overapplied overhead occurs when the amount of overhead allocated to products or services is greater than the actual overhead incurred.

Allocation of Budgeted Costs

This refers to the process of distributing the total budgeted costs across different departments, projects, or activities based on predetermined criteria.

User Department

A department within an organization that directly uses or benefits from a product or service, as opposed to departments involved in production or administration.