Which of These Would Be a Non- Adjusting Event Requiring

question 7

Multiple Choice

Which of these would be a non- adjusting event requiring disclosure when occurring after the reporting period?

• A)The discovery of an accounting error in the financial statements of the entity
• B)The issue of significant guarantees to customers
• C)The settling of a court case which shows that the entity had a liability to pay fines during the reporting period
• D)The determination of the proceeds from the sale of some machinery before the end of the reporting period

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Definitions:

Preoperational Thought

A stage in Piaget's cognitive development theory characterized by symbolic thinking, egocentrism, and a lack of logical reasoning in children aged 2 to 7 years.

Centration

A characteristic of preoperational thought in which the child tends to focus on one salient feature of an experience or event at a time.

Zone Of Proximal Development

In Vygotsky’s theory, the range of concepts and skills that a learner is to understand or perform only with support or scaffolding from someone else.

Attempting Task

Engaging in an endeavor or activity with the intention of achieving a specific outcome or goal.