Which of the Following Would Not Be Considered a Subsequent

question 77

Multiple Choice

Which of the following would not be considered a subsequent event to financial statements?

• A)A major customer declares bankruptcy subsequent to the balance sheet date,but prior to issuing the statements.This event was not considered on the balance sheet date.
• B)A major purchase of a subsidiary to the balance sheet date,but prior to issuing the statements.
• C)Substantial debt incurred subsequent to the balance sheet date,but prior to issuing the statements.
• D)Substantial stock issued subsequent to the balance sheet date,but prior to issuing the statements.
• E)Hiring of employees for a new store,subsequent to the balance sheet date,but prior to issuing the statements.

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Definitions:

Reasonable Quantity

An amount of goods or services deemed to be fair and appropriate under normal circumstances or usage.

UCC

A broad spectrum of laws that oversee every commercial transaction in the United States is encapsulated within the Uniform Commercial Code (UCC).

Industry Standards

Established norms and guidelines within a particular industry that are widely accepted and followed by businesses and professionals within that field.

Small Claims Court

A court specializing in resolving smaller legal disputes involving limited monetary amounts, typically in a simpler, faster process.