Which of the Following Is the Best Example of a Type

question 16

Multiple Choice

Which of the following is the best example of a Type I subsequent event?

• A)A related-party transaction occurs during the course of the audit.
• B)The company defaults on its line-of-credit with the bank subsequent to year end but previous to the release of the audit opinion.
• C)Litigation that was accrued as a liability in the year under audit is settled subsequent to year-end for an amount in excess of estimates.
• D)The company initiates an initial public offering subsequent to year-end.

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Definitions:

Worker Centers

Community-based and advocacy-focused organizations that provide support to workers who are often in low-wage jobs and not represented by a union.

Labor Markets

Economic markets where labor is traded, characterized by the demand and supply of labor force.

National Labor Relations Board

An agency of the US government tasked with implementing United States labor laws concerning collective bargaining and addressing unjust labor practices.

Fact Finder

Third party to collective bargaining who reports the reasons for a dispute, the views and arguments of both sides, and possibly a recommended settlement, which the parties may decline.