Which of the Following Can Illustrate a Subsequent Event That

question 45

Multiple Choice

Which of the following can illustrate a subsequent event that requires disclosure but not adjustment?

• A)Settlement of long outstanding litigation.
• B)Collection of a customer debt that had been written off.
• C)Loss of inventory as a result of a flood occurring after year-end.
• D)An additional tax assessment on prior income.

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Definitions:

Resamples

The practice of drawing repeated samples from a given dataset, often with replacement, to estimate the precision of sample statistics.

Permutation Test

A non-parametric statistical test that assesses the significance of a difference between groups by computing all possible outcomes under rearrangements of labels.

P-value

The probability of obtaining test results at least as extreme as the results observed, under the assumption that the null hypothesis is true.

Test Statistic

A calculated value used in statistical hypothesis testing to determine whether to reject the null hypothesis.