An Example of a Type I Subsequent Event Is

question 66

Multiple Choice

An example of a Type I subsequent event is:

• A)a tornado that destroys an entity's factory after the balance sheet date.
• B)an event after the balance sheet date that confirms the auditor's belief (documented prior to the end of the entity's fiscal year)that a large portion of the entity's inventory is obsolete.
• C)notification of an IRS audit after the balance sheet date.
• D)the entity's Board of Directors unexpectedly resigns after the balance sheet date.

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Definitions:

Sound Wave

A type of pressure wave caused by the vibration of an object, which travels through a medium (such as air) and is perceived as sound when it reaches a human ear.

Frequencies

The number of occurrences of a repeating event per unit of time, often used in the context of sound waves or electromagnetic waves.

Virtual-Reality Goggles

Wearable devices that provide immersive digital experiences by simulating environments and visual perceptions.

Mannequin

A life-sized model of the human body, often used in retail to display clothes or in art for drawing reference.