Which of the following would not be considered a subsequent event to financial s
ID: 2588799 • Letter: W
Question
Which of the following would not be considered a subsequent event to financial statements?
A major customer declares bankruptcy subsequent to the balance sheet date, but prior to issuing the statements. This event was not considered on the balance sheet date.
A major purchase of a subsidiary to the balance sheet date, but prior to issuing the statements.
Substantial debt incurred subsequent to the balance sheet date, but prior to issuing the statements.
Substantial stock issued subsequent to the balance sheet date, but prior to issuing the statements.
Hiring of employees for a new store, subsequent to the balance sheet date, but prior to issuing the statements.
A)A major customer declares bankruptcy subsequent to the balance sheet date, but prior to issuing the statements. This event was not considered on the balance sheet date.
B)A major purchase of a subsidiary to the balance sheet date, but prior to issuing the statements.
C)Substantial debt incurred subsequent to the balance sheet date, but prior to issuing the statements.
D)Substantial stock issued subsequent to the balance sheet date, but prior to issuing the statements.
E)Hiring of employees for a new store, subsequent to the balance sheet date, but prior to issuing the statements.
Explanation / Answer
Hiring of employees for a new store, subsequent to the balance sheet date, but prior to issuing the statements would not be considered a subsequent event to financial statements Option E is correct
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