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:

Corporate Vertical Marketing Systems

A structured form of marketing system in which a single corporate entity controls the entire process of product or service delivery, from manufacturing to retail.

Backward Integration

A business strategy where a company acquires or merges with its suppliers to control the supply chain and reduce costs.

Supply Sources

Origins or providers from which goods or services are obtained, including manufacturers, wholesalers, or distributors.

Retailer-sponsored Cooperative

A group of retailers that pool their resources together for joint purchasing, marketing, or other business operations to increase competitive advantage.