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:

Chart

In finance and accounting, often refers to graphical representations of data, such as financial charts for analysis.

Accounts

Records within financial accounting that are used to track financial transactions and positions in various categories, such as assets, liabilities, equity, revenue, and expenses.

Prepaid Rent

An advance payment for rent that is recorded as an asset and then expensed over the period the payment covers.

Office Supplies

Items used in offices on a daily basis for functioning and managing tasks, including pens, paper, and office equipment.