Which One of the Following Is the Best Example of a Type

question 109

Multiple Choice

Which one of the following is the best example of a Type II subsequent event?

• A)Election of new board members.
• B)Change in auditors.
• C)Inability to collect from a significant customer.
• D)Acquisition of a subsidiary.

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Definitions:

Asset

A valuable economic entity held or overseen by an individual, business, or state, expected to bring about future advantage.

Sales

The total revenue generated from the sale of goods or services over a specific period.

Revenue Account

An account that tracks the income earned from normal business operations, such as sales of goods or services.

Sales Tax Payable

A liability account in a company's financial statements, representing sales tax collected from customers but not yet remitted to the government.