A Type I Subsequent Event Should _______

question 38

Multiple Choice

A Type I subsequent event should _______.

• A)not require an adjustment to the financial statements
• B)always require an adjustment to the financial statements
• C)be disclosed in the notes to the financial statements only
• D)should be referred to management to determine disclosure requirements

---

Definitions:

Herpetic Gingivostomatitis (HGS)

A viral infection affecting the mouth and gums, marked by sores, fever, and swollen gums, commonly caused by the herpes simplex virus.

Topical Anesthetics

Medications applied directly to the skin or mucous membranes to temporarily numb the area, providing pain relief for procedures or conditions causing discomfort.

Acyclovir (Zovirax)

An antiviral drug used to treat infections caused by herpes viruses, including genital herpes, cold sores, shingles, and chickenpox.

Chickenpox

A highly contagious viral infection causing an itchy, blister-like rash on the skin, more common in children but can affect people at any age.