If the Date of an Entity's Financial Statements Is December

question 13

Multiple Choice

If the date of an entity's financial statements is December 31, the date of the auditor's report is February 20, and the audit report release date is February 22, which of the following is considered a subsequent event?

• A)A significant acquisition that was announced on February 1 and will be finalized on October 1.
• B)A court settlement on March 3 related to a case that was pending on December 31.
• C)Losses from the devaluation of a foreign currency that became finalized on February 21.
• D)The entity's announcement of a major restructuring plan on December 30 that will be implemented during the upcoming year.

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Definitions:

Elected Official

An individual who has been chosen by voters to hold a public office through a democratic electoral process.

Direct Democracy

Direct democracy is a form of government in which citizens directly participate in the decision-making processes, rather than through elected representatives, often through referendums and initiatives.

Gerrymandering

The manipulation of electoral district boundaries to favor one party or class.

Retrospective Voting

A theory in political science where voters make decisions based on a politician's or a political party's past performance rather than future promises.