Which Statement Defines a Type 1 Subsequent Event

question 57

Multiple Choice

Which statement defines a Type 1 subsequent event?

• A)An event that provides evidence of conditions that arose after the date of the financial statements
• B)An event that provides evidence of unreported earnings that arose after the date of the financial statements.
• C)An event that provides evidence of conditions that existed at the date of the financial statements.A Type I event requires an adjustment to the financial statements.
• D)An event that provides evidence of conditions that did not exist at the date of the financial statements.A Type I event requires an adjustment to the financial statements.

---

Definitions:

Supine Position

A body position where a person lies flat on their back.

Flexing

The action of tensing or contracting muscles in the body to display muscular strength or for physical exercise.

Acromion Process

A bony process on the scapula (shoulder blade) that extends laterally over the shoulder joint.

Subacromial Bursa

A fluid-filled sac located under the acromion in the shoulder, providing cushion between tendons and overlying acromial bone to reduce friction.