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.

---

Definitions:

Direct Labor-Hours

The total time worked by employees who are directly involved in the manufacturing process of a product.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or services, based on a preselected activity base.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor expenses.

Machine-Hours

The total number of hours that machinery is operating during a certain period, often used as a basis for allocating manufacturing overhead.