An Example of a Type II Subsequent Event Includes the Settlement

question 29

True/False

An example of a Type II Subsequent Event includes the settlement two months after year-end of a liability for an amount well in excess of the amount that was accrued at year-end.

---

Definitions:

Planning Budget

A budget designed at the beginning of a budgeting period that is based on projected values and assumptions for that period.

Fixed Cost

Costs that do not change with the level of production or sales volume, such as rent or salaries.

Other Expenses

Costs not directly related to the production of goods or services, including administrative and general expenses.

Planning Budget

A forecast that outlines future income, expenses, and financial goals, guiding financial decision-making over a specific period.