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

question 52

Multiple Choice

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

• A) a major acquisition of capital assets after the reporting date
• B) destruction of inventory by vandals after the reporting date
• C) changes in tax rates or tax laws enacted or announced after the reporting date
• D) destruction of inventory on consignment by vandals before the reporting date

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Definitions:

Effective

Capable of producing the intended or desired result.

Capital Contribution

Money, property, or other assets contributed to a company or partnership by its owners or partners to support its operations.

Limited Partner

An investor in a limited partnership who is not involved in daily business operations and whose liability is limited to the amount they invested in the partnership.

General Partners

Individuals who participate in the management of a partnership and have unlimited liability for its debts.