Which of the Following Would Be Non-Adjusting Subsequent Event(s)

question 122

Multiple Choice

Which of the following would be non-adjusting subsequent event(s) ?

• A) An insure fire loss shortly after the company's year-end.
• B) Bankruptcy filing by the company's major customer, which accounted for 60% of the company's receivables at the balance sheet date.
• C) The company announces restructuring plans shortly before its year-end.
• D) Sale of goods to Company with good current ratio.

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Definitions:

Variable Manuf. Overhead

Expenses associated with manufacturing that vary directly with the level of production output, such as materials and utilities.

Standard Variable Overhead Rate

A predetermined rate applied to estimate the variable overheads based on a specific activity base.

Standard Hours Per Unit

The estimated time required to produce one unit of a product under standard operating conditions.

Actual Output

The real quantity of goods or services produced by a company, as opposed to estimated or planned production levels.