Which of the Following Material After Balance Sheet Date Events

question 2

Multiple Choice

Which of the following material after balance sheet date events is a non-adjusting event?

• A) Major disposal of assets before the reporting date.
• B) Expropriation of assets by government before the reporting date.
• C) Issue of preference shares shortly after the reporting date.
• D) Settlement before authorisation date of the financial report of a lawsuit filed by a customer three years ago.
• E) None of the given answers.

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Definitions:

Discounted Price

Discounted Price refers to a price that has been reduced from the original or listed cost, often to accelerate sale or clearance or as part of promotional offers.

Credit Terms

Credit terms are the payment conditions imposed by suppliers on customers, including the amount of time allowed to pay off the amount due.

Goods

Tangible items that are produced or manufactured for sale to consumers or other businesses.

Present Value

The current value of a future amount of money, calculated by applying a discount rate to account for the time value of money.