Which of the Following Would Be a Type II Subsequent

question 90

Multiple Choice

Which of the following would be a Type II subsequent event?

• A)Information becomes available that provides evidence about the valuation of an estimate or reserve that had been accrued at year end.
• B)A sale of inventory below carrying value provides evidence that the net realizable value was less than cost at year end.
• C)A stock dividend or split that takes place during the subsequent period should be disclosed.In addition,earnings-per- share figures should be adjusted to show the retroactive effect of the stock dividend or split.
• D)A material change occurs in the value of investment securities after the balance sheet date.

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Definitions:

Project Organization

An organization formed to ensure that programs (projects) receive the proper management and attention.

Functional Areas

Specific domains or categories within a business or organization that focus on particular tasks or responsibilities, such as marketing, finance, human resources, etc.

PERT

Program Evaluation and Review Technique, a project management tool used to schedule, organize, and coordinate tasks within a project.

CPM

Critical Path Method, a project management technique used to plan and control a project by identifying tasks, their durations, and dependencies to calculate the longest path of planned activities to the end of the project.