Events After the Reporting Date Are of Two Types:
Type $\quad$

question 23

Multiple Choice

Events after the reporting date are of two types:
Type 1 $\quad$ Those that provide new evidence about conditions that existed at the reportingdate
Type2 $\quad$ Those that relate to new conditions arising after the reportingdate

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:

Government Vouchers

Government vouchers are certificates issued by the government that can be used as payment for certain goods or services, often part of social or educational programs.

In-Kind Transfer

A form of payment made in goods and services rather than in cash to beneficiaries, often used in social programs.

Negative Income Tax

A proposed form of social assistance that provides income support by giving individuals a guaranteed minimum income, with payments decreasing as the recipient's income rises.

Food Stamps

A government-issued coupon or electronic card system used to assist in purchasing food for those in need.