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

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Definitions:

Classical Economics

A school of thought in economics that emphasizes the importance of free markets, competition, and self-regulation of markets based on the supply and demand principle.

Inputs

Inputs refer to the resources, materials, labor, and information that are required to produce goods or services in any process or system.

Resources

Resources refer to materials, money, staff, and other assets that can be used by an organization or individual to achieve specific goals or conduct operations.

Sustained Competitive Advantage

The long-term ability of a company to remain more competitive than its rivals by maintaining unique value propositions.