When Subsequent Events Are Used to Evaluate the Amounts Included

question 138

True/False

When subsequent events are used to evaluate the amounts included in the year-end financial statements, auditors must distinguish between conditions that existed at the balance sheet date and those that came into being after the balance sheet date.

---

Definitions:

Endomysium

The thin layer of connective tissue that wraps each individual muscle fiber, aiding in the transmission of force and nourishment of the cell.

Excitability

The ability of a cell or tissue to respond to a stimulus, particularly noticed in nerve and muscle cells.

Extensibility

The capability of muscle tissue to be stretched or extended without being damaged.

Contractility

The capability of muscle tissue to contract or shorten, generating force and movement.