Which of the Following Would Not Be Considered a Subsequent

question 77

Multiple Choice

Which of the following would not be considered a subsequent event to financial statements?

• A)A major customer declares bankruptcy subsequent to the balance sheet date,but prior to issuing the statements.This event was not considered on the balance sheet date.
• B)A major purchase of a subsidiary to the balance sheet date,but prior to issuing the statements.
• C)Substantial debt incurred subsequent to the balance sheet date,but prior to issuing the statements.
• D)Substantial stock issued subsequent to the balance sheet date,but prior to issuing the statements.
• E)Hiring of employees for a new store,subsequent to the balance sheet date,but prior to issuing the statements.

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Definitions:

Better Business Bureau

A nonprofit organization focused on advancing marketplace trust, providing reviews on businesses, and handling consumer complaints.

Variable Costs

Expenses that change in proportion to the activity or volume of a business.

Brand Equity

The value and strength of a brand that is determined by consumer perception, recognition, and loyalty.