Whenever Subsequent Events Are Used to Evaluate the Amounts Included

question 97

Multiple Choice

Whenever subsequent events are used to evaluate the amounts included in the statements, care must be taken to distinguish between conditions that existed at the balance sheet date and those that came into being after the end of the year.The subsequent information should NOT be incorporated directly into the statements if the conditions causing the change in valuation:

• A) did not take place until after year-end.
• B) took place before year-end.
• C) occurred both before and after year-end.
• D) are reimbursable through insurance policies.

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A payment scheme in which workers are paid a fixed rate for each unit produced or task completed.

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Parts of an organization treated as separate businesses, responsible for generating their own revenues and profits.

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