Which of the Following Is NOT an Example of an Adjusting

question 22

Multiple Choice

Which of the following is NOT an example of an adjusting event under IAS 10?

• A) the settlement after reporting date but prior to the date that the financial statements are authorised for issue of a court case which had commenced prior to reporting date.
• B) the sale of inventories after reporting date but prior to the date that the financial statements are authorised for issue for an amount below cost.
• C) uninsured damage to a material item of machinery after reporting date but prior to the date that the financial statements are authorised for issue for an amount below cost.
• D) receipt of advice after reporting date but prior to the date that the financial statements are authorised for issue that a material debtor has been placed in liquidation.

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Definitions:

Economic Profit

A firm's total revenues minus its explicit and implicit costs; a measure of performance that includes opportunity costs.

Efficient Level

The optimal point of production or operation where a firm, market, or economy can achieve the best possible outcome with the least waste of resources.

Society's Point

A perspective or consideration based on the collective interests or well-being of a community or society as a whole.

Total Revenue

The total income a firm receives from the sale of its goods or services.