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.

Calculate unit product costs under variable and absorption costing systems.

Evaluate the effects of fixed manufacturing overhead and direct labor costs on unit product costs and net operating income.

Understand the differences between absorption costing and variable costing systems.

Calculate net operating income under both absorption and variable costing methods.

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Definitions:

Completed

Refers to the state of having finished an activity or project.

Title

The legal right to own or possess something, such as property or a vehicle, often represented by a document proving ownership.

Deposit

A sum of money placed with a bank or other financial institution for safekeeping, or as partial payment in a purchasing process ensuring the buyer's intent to carry out the contract.

Refused Delivery

The act of rejecting or not accepting a delivery of goods or mail.