Events After the Reporting Date Are of Two Types

question 12

Multiple Choice

Events after the reporting date are of two types:
Type 1 Those that provide new evidence about conditions that existed at the reporting date
Type 2 Those that relate to new conditions arising after the reporting date
Which of the following statements is correct?

• A) Only type 1 events affect the figures in the financial statements of the previous period
• B) Only type 2 events affect the figures in the financial statements of the previous period
• C) Both type 1 and type 2 events affect the figures in the financial statements of the previous period
• D) Neither type 1 nor type 2 events affect the figures in the financial statements of the previous period

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Definitions:

Implicit Prejudice

Unconscious or automatic negative evaluations or beliefs about a group or its members.

Explicit Prejudice

Openly expressed negative attitudes or beliefs toward a group or its members based on their perceived characteristics.

Group Polarization

The phenomenon where discussions within a group lead to the adoption of more extreme positions or attitudes than the initial inclinations of its members.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.