Which of the Following Would Not Be Considered a Subsequent

question 44

Multiple Choice

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

• 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 subsequent 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:

Transportation Systems

The infrastructure and operations that facilitate the movement of people and goods from one location to another.

American Democracy

A system of government in the United States characterized by representative democracy, where citizens exercise power through elected representatives based on the principles of freedom and equality.

Jackson

Refers to Andrew Jackson, the seventh President of the United States, known for his populist approach and policies, including the Indian Removal Act.

Marshall

Refers to George C. Marshall, an American military leader, Chief of Staff of the Army, Secretary of State, and the third Secretary of Defense, known for his leadership during World War II and the European Recovery Program (Marshall Plan).