Which of the following statements are / is true? - Events after Balance Sheet are?
Correct answer: C. The events after Balance Sheet date but before its approval by the board
- A. All the significant events after the Balance Sheet date
- B. The events after Balance Sheet date but before submitting it to the Registrar of Companies
- C. The events after Balance Sheet date but before its approval by the board
- D. All changes after Balance Sheet date before its approval
Explanation
Events after the reporting date are considered up to the date on which the financial statements are authorised for issue, normally when approved by the board. Therefore, option c gives the intended boundary.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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