An Example of a Type I Subsequent Event Is

question 71

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belief (documented prior to the end of the entity's fiscal year) that a large portion of the entity's inventory is obsolete.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.

Understand the impact of stock transactions (including reacquisitions and sales) on a company's financial statements.

Analyze and prepare retained earnings statements and understand the effects of dividends on retained earnings.

Develop the ability to prepare the Stockholders' equity section of the balance sheet accurately.

Calculate and interpret earnings per share (EPS) for a company.

---

Definitions:

Pastes Formula

The action of copying a formula from one location and inserting it into another within a spreadsheet or document.

Circular Reference

A situation in computational logic or formulas where a reference is made back to itself directly or indirectly, leading to potential infinite loops or errors.

AVERAGE Function

A spreadsheet function that calculates the mean of a range of numbers.

Formula AutoComplete

Formula AutoComplete is a feature in spreadsheet applications that suggests and completes formulas as you type, making it easier to enter and edit formulas accurately.