Which of the Following Events Would Not Be Treated as a Subsequent

question 107

Multiple Choice

Which of the following events would not be treated as a subsequent event?

• A) settlement of litigation between the year end and the issuance of the financial statements
• B) sale of a business segment between the year end and the issuance of financial statements
• C) recalculation of estimated salvage values for property and equipment at year end
• D) stock split occurring ten days after the end of the fiscal year

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Definitions:

Transaction

This refers to any event or action that changes the financial position or the financial statements of a company.

Posted

The process of recording financial transactions in the ledger accounts as part of the accounting cycle.

Reference Column

A column in financial documentation used to indicate a source document or correlation with another piece of data, aiding in tracking and auditing.

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts, typically used to check the mathematical accuracy of bookkeeping entries.