Correct Answer:
D. A court case settled after year end confirming an obligation that existed at the reporting date
Adjusting events provide evidence of conditions that existed at the reporting date.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Which of the following is an adjusting event after the reporting period?
Related MCQs
An accrued expense is an expense that has been:
A.
Paid in advance
B.
Paid and recorded as an asset
C.
Neither incurred nor paid
D.
Incurred but not yet paid, shown as a liability
Correct answer is:
D. Incurred but not yet paid, shown as a liability
Do you agree with this answer?
Line-item budgeting is a budget format that:
A.
Lists expenditure by inputs such as salaries and supplies
B.
Links spending to results
C.
Starts from zero each year
D.
Excludes salaries
Correct answer is:
A. Lists expenditure by inputs such as salaries and supplies
Do you agree with this answer?
A bond sells at a discount when:
A.
The market interest rate is higher than the coupon rate
B.
The market interest rate is lower than the coupon rate
C.
The coupon rate is zero only
D.
The bond is about to mature
Correct answer is:
A. The market interest rate is higher than the coupon rate
Do you agree with this answer?
The Auditor-General of Pakistan holds office for a term of:
A.
Four years or until the age of sixty-five, whichever is earlier
B.
Two years only
C.
Five years with no age limit
D.
Until the age of seventy
Correct answer is:
A. Four years or until the age of sixty-five, whichever is earlier
Do you agree with this answer?
The Lima Declaration of 1977 is concerned with:
A.
Guidelines on auditing precepts for public sector auditing
B.
Rules for the accounting of private companies
C.
Banking supervision
D.
Tax treaties
Correct answer is:
A. Guidelines on auditing precepts for public sector auditing
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The cost of a machine bought last year and already paid for is, in a new investment decision:
A.
A relevant cash outflow
B.
A future opportunity cost
C.
Added to the project cost
D.
A sunk cost and ignored
Correct answer is:
D. A sunk cost and ignored
Do you agree with this answer?
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