Which of the Following Events Occurring After the Reporting Date

question 4

Multiple Choice

Which of the following events occurring after the reporting date may need to be disclosed in the financial statements of a business for that previous period?

• A) The bankruptcy of a major debtor
• B) A loss caused by fire or flood
• C) The announcement of a business merger
• D) All of the above may need to be disclosed

---

Definitions:

Marginal Revenue

Marginal revenue refers to the additional income generated from selling one more unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product, which varies depending on the level of production.

Cover Charge

A fee that patrons are required to pay upon entry to a bar, nightclub, or restaurant, typically to cover entertainment expenses.

Hank's Honkytonk

A fictional or specific bar or entertainment venue, often associated with country music and dancing.