Accounting Multiple Choice Question – 13 January 2021

Which material event, occurring shortly after the year end, should be disclosed only as a note to the accounts?

Select ONE answer:

1. discovery of a payroll computer fraud
2. insolvency of a major debtor
3. loss of stock due to flood damage
4. permanent reduction in value of property

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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