At Year-End Annette Viau Sent Out Accounts Receivable Confirmations

question 39

Multiple Choice

At year-end Annette Viau 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 Annette'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:

No Child Left Behind Act

A U.S. federal law enacted in 2002 aimed at improving the performance of U.S. primary and secondary schools by increasing standards of accountability for states, school districts, and schools, as well as providing parents more flexibility in choosing which schools their children will attend.

Federal Mandate

Regulations that the federal government imposes on state and local governments to carry out certain policies.

Federal Expenditures

The spending by the federal government of a country, including on defense, education, public welfare, and infrastructure projects.

Average Tax Rate

The portion of total income paid in taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.