Which of the Following Would Be a Type II Subsequent

question 90

Multiple Choice

Which of the following would be a Type II subsequent event?

• A)Information becomes available that provides evidence about the valuation of an estimate or reserve that had been accrued at year end.
• B)A sale of inventory below carrying value provides evidence that the net realizable value was less than cost at year end.
• C)A stock dividend or split that takes place during the subsequent period should be disclosed.In addition,earnings-per- share figures should be adjusted to show the retroactive effect of the stock dividend or split.
• D)A material change occurs in the value of investment securities after the balance sheet date.

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Definitions:

Enhance Credibility

The process of increasing the believability and trustworthiness of a person or organization.

Parallel Talking Heads

A visual presentation format where two or more speakers are displayed simultaneously, typically to compare or contrast their messages or to enhance engagement.

Basic Outline

A simplified structure highlighting the key components and their arrangement in a document, presentation, or project.

Proposal Preparation

The process of creating a document that outlines a plan or suggestion for a project, including objectives and methods.