If an Entity Had Litigation Pending at the Date of the Financial

question 32

Multiple Choice

If an entity had litigation pending at the date of the financial statements and auditors learn of the outcome of this litigation following the date of their report (but prior to the audit report release date) ,this is known as a(n) :

• A)Omitted procedure.
• B)Prior period adjustment.
• C)Subsequent event.
• D)Subsequently discovered fact.

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Definitions:

Cash Sales

Cash sales refer to transactions where payment is made in full using cash or cash equivalents at the time of purchase.

Cash Discount Amount

A reduction in the price of an item or service that is offered by the seller as an incentive for early payment by the buyer.

Cash Discount

A discount given for a cash purchase.