Which of the Following Is NOT an Example of an Adjusting

question 10

Multiple Choice

Which of the following is NOT an example of an adjusting event under AASB 110?

• A) the settlement after reporting date but prior to the date that the financial statements are authorised for issue of a court case which had commenced prior to reporting date.
• B) the sale of inventories after reporting date but prior to the date that the financial statements are authorised for issue for an amount below cost.
• C) uninsured damage to a material item of machinery after reporting date but prior to the date that the financial statements are authorised for issue for an amount below cost.
• D) receipt of advice after reporting date but prior to the date that the financial statements are authorised for issue that a material debtor has been placed in liquidation.

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Definitions:

Organization

pertains to a structured group of people with specific roles and duties working together to achieve common goals or objectives, often in a coordinated and systematic manner.

Direction

Guidance or supervision on how to perform tasks or the course along which something moves or is aimed to move.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding contradictory beliefs and are motivated to reduce this dissonance by changing their attitudes or behaviors.

Postdecisional Dissonance

Psychological discomfort experienced after making a difficult decision, often leading to regret or questioning of the choice.