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.

---

Definitions:

Psychoanalytic Theorist

A psychologist who studies and uses the theories and methods of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Preschooler

A child typically between the ages of 3 and 5 years old who is in the developmental stage before entering formal schooling.

Psychosocial Stage

Stages of psychological and social development postulated by Erik Erikson, through which an individual progresses throughout their lifetime.

Identity Versus Identity Confusion

Erikson’s fifth developmental stage, which individuals experience during the adolescent years. At this time, adolescents examine who they are, what they are all about, and where they are going in life.