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      Question

      Which of the following is an example of an adjusting

      event as per AS 4? 
      A A change in government tax policies, affecting future transactions Correct Answer Incorrect Answer
      B A company issuing shares after the balance sheet date Correct Answer Incorrect Answer
      C A debtor declared insolvent after the balance sheet date, indicating a loss existing at the balance sheet date Correct Answer Incorrect Answer
      D A fire destroying the company’s warehouse after the balance sheet date Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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