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:

Baltimore Newspapers

Refers to newspapers published in Baltimore, Maryland, covering local, national, and international news.

Substitute Goods

Substitute goods are products or services that can be used in place of each other, fulfilling similar needs or desires.

Consumer Income

The total amount of income earned by consumers, impacting their ability to purchase goods and services.

Equilibrium Price

The price at which the quantity of goods demanded is equal to the quantity of goods supplied, leading to a market balance.