Which of the Following Subsequent Events Would Represent an Event

question 55

Multiple Choice

Which of the following subsequent events would represent an event that provides information about conditions that arose following the date of the financial statements?

• A)Settlement of long outstanding litigation.
• B)Collection of a past due accounts receivable.
• C)Loss of inventory as a result of a flood.
• D)An additional tax assessment on prior income.

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Definitions:

Simplify

The process of making an expression or equation easier to understand or solve by reducing its complexity.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same powers, allowing them to be combined through addition or subtraction.

Associative Property

A mathematical rule that states the way in which numbers are grouped (associated) does not change their sum or product.

Algebra

A branch of mathematics dealing with symbols and the rules for manipulating these symbols; it is a unifying thread of almost all of mathematics.