A non-adjusting event is one that occurs:
A) after the reporting date.
B) after the auditor has signed the audit report.
C) after the completion of the financial reports.
D) after the financial statements have been distributed.

Question

Quizplus · Accepted Answer

A non-adjusting event is one that occurs after the reporting date, which is the date the financial statements are prepared. This event is not reflected in the financial statements and does not require any adjustment. Options B, C, and D are not correct because they all happen before or during the preparation of the financial statements.

A Non-Adjusting Event Is One That Occurs