In Relation to a Set of 2015 Basic Financial Statements,a

question 26

Multiple Choice

In relation to a set of 2015 basic financial statements,a subsequent event is one that

• A) occurs before the 2015 financial statements are issued.
• B) involves uncertainty as to possible gain or loss that will ultimately be resolved in 2016 or later.
• C) occurs after the 2015 financial statements are issued.
• D) requires an appropriate adjusting entry to be made as of the end of 2015.

---

Definitions:

Consideration

The value (which can be a promise, an act, or an object) exchanged between parties in a contract.

Voluntary Transfer

The act of willingly transferring ownership or interest in an asset from one party to another without coercion.

Conveyance

The act of transferring ownership of property from one party to another, often involving real estate.

Gift

A voluntary transfer of property for which the donor receives no consideration in return.