A Subsequent Event for an Entity with a December 31

question 62

Multiple Choice

A subsequent event for an entity with a December 31, 2018, year-end would not include:

• A) A change in the estimated useful lives of equipment in January 2019.
• B) An issuance of bonds in January 2019.
• C) An acquisition of another company in January 2019.
• D) A major uncertainty at December 31, resolved in January 2019.

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Definitions:

Independent Agency

An agency that is typically not located within a government department. It is governed by a board of commissioners appointed by the president with the advice and consent of the Senate.

Accounting Commission

An accounting commission refers to a governing body or group of experts that oversees accounting standards and practices, ensuring integrity and compliance within the profession.

Informal Rule Making

A process by which regulatory agencies create and issue rules through a less formal process than formal rulemaking, often involving public notice and comment.

Formal Rule Making

A process by which federal agencies create new regulations, involving publication of a proposed rule, a period for public comment, and the issuance of a final rule.