Listed below are material events that pertain to the financial statements of the Henry Corporation as of December 31, 20X5. Your field work on this audit ended on January 31, 20X6, and your report was issued February 10, 20X6. Indicate the nature of each event by using the following code letters:
-method of accounting
A)Postaudit discovery of existing facts
B)None of the above
C)None of the above.
D)Sale of a subsidiary on January 20

Question

Quizplus · Accepted Answer

The sale of a subsidiary on January 20 is an event that occurred after the balance sheet date but before the issuance of the audit report. This type of event may require disclosure in the financial statements to inform users about significant events that could affect their understanding of the financial position and results of operations.

Listed Below Are Material Events That Pertain to the Financial