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:

Product Costs

The costs directly associated with the production of goods, including direct labor, materials, and manufacturing overhead.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale during the period.

Joint Costs

Costs incurred in the process of producing two or more products simultaneously, where the costs cannot be separated easily for each product.

Skimmed Milk

A dairy product from which almost all the fat has been removed.