At Year-End Marissa Albion Sent Out Accounts Receivable Confirmations

question 40

Multiple Choice

At year-end Marissa Albion sent out accounts receivable confirmations. One of the major customers of her client confirmed that they would not be able to pay off the receivable. The client subsequently went bankrupt and an aggrieved shareholder of Marissa's client sued her firm. What type of subsequent event was this?

• A) Type 1
• B) Type 2
• C) Type 1 and 2
• D) this was not a subsequent event

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Definitions:

Cognition

The cognitive activity of gaining understanding and knowledge by means of thinking, experiencing, and sensory perception.

Mental Activities

Processes related to the mind, such as thinking, reasoning, imagining, and remembering.

Remembering

The cognitive process of retrieving past experiences or information.

Prototype

An original model or initial version of something from which other forms are copied or developed.