Assume That a Major Customer of the Company That You

question 124

Multiple Choice

Assume that a major customer of the company that you are auditing files for bankruptcy during the subsequent period because of a deteriorating financial condition.Neither you nor the client becomes aware of the event until the bankruptcy filing is reported.What type of subsequent event would this be?

• A)Type I subsequent event
• B)Type II subsequent event
• C)Neither Type I or Type II
• D)Both Type I and Type II

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Definitions:

Relative Sea Level

The height of the sea surface relative to the land, which may change due to factors like tectonic activity or sea-level rise.

Sheltered Bays

Coastal water bodies that are protected from strong waves and currents, often by landforms around them.

Glacial Streams

Streams of meltwater from glaciers, carrying melted ice away from the glacier and often depositing loads of sediment.

Sea Level

The average height of the ocean's surface between high and low tide, used as a reference point for measuring elevation and depth on Earth.