Events That Occur After the Balance Sheet Date but Prior

question 112

Multiple Choice

Events that occur after the balance sheet date but prior to its issuance are called:

• A) Prior events.
• B) Post-closing events.
• C) Subsequent events.
• D) Unaudited events.

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Definitions:

Capital

Financial assets or resources owned by an individual or organization, particularly those used to generate income or investment.

Adjusting Journal Entries

Journal entries that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accounting period.

Worksheet

A tool used in accounting to consolidate all of the financial information and to prepare adjusting entries and financial statements.

Account Balances

The amount of money in an account at a specific point in time, reflecting the difference between debits and credits.