Which of the Following Events Occurring After the Reporting Date

question 12

Multiple Choice

Which of the following events occurring after the reporting date but before the financial report is authorised for issue is NOT an example of an adjusting event?

• A) a decline in the market value of a listed security;
• B) the notification of the insolvency of a debtor;
• C) an event that indicates that the going concern basis of accounting may not be appropriate;
• D) the sale of inventories after the reporting date for an amount below cost.

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Definitions:

Clasts

Fragments of geological detritus, rocks, or minerals broken off from a larger solid formation, typically found in sedimentary rocks.

Wind

Movement of air relative to Earth’s surface.

Angular Clasts

Rock fragments that have sharp edges and points, indicating they have not been significantly transported from their source.

Well Sorted

In sedimentology, "well sorted" describes sedimentary particles that are of a uniform size, indicating a consistent depositional or geological process.