The Following Are Material Events That Occurred for Yorba Linda

question 3

Multiple Choice

The following are material events that occurred for Yorba Linda Plc between the reporting date and the date when the financial report is authorised for issue. $$\begin{array} { | l | l | } \hline \text { II } & \text { Bankruptcy of a customer that occurs after the reporting date } \\\hline \text { III } & \begin{array} { l } \text { Determination after the reporting date of the costs assets purchased before the } \\\text { reporting date }\end{array} \\\hline \text { IV } & \begin{array} { l } \text { Decline in market value of investments after the reporting date of investments } \\\text { purchased before the reporting date }\end{array} \\\hline \mathrm { V } & \text { Dividends declared after the reporting date } \\\hline \mathrm { VI } & \text { A lawsuit filed by a customer after the reporting date } \\\hline\end{array}$$ Which of the following options identify all the adjusting events for Yorba Linda Plc,in accordance with IAS 10 Events After the Reporting Period?

• A)I, II and III
• B)II, III and IV
• C)I, II and VI
• D)III, IV and V

Grasp the concepts of liquidity, earnings per share, trend analysis, and ratio analysis in evaluating financial health.

Understand the use of trend percents in analyzing financial statements.

Learn how comparative financial statements are utilized for financial analysis.

Recognize the role and calculation of common-size financial statements in financial analysis.

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Definitions:

Corporate Capital Structure

The mix of debt, equity, and other securities that a company uses to finance its activities.

Diluted Earnings Per Share

A metric that calculates a company's earnings per share (EPS) if all convertible securities were converted into common stock, potentially lowering the EPS.

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often paying fixed dividends.