Which of the following is not an example of a type 2 subsequent event?
A) the loss of inventory after year-end
B) the issuance of shares
C) the bankruptcy of a customer subsequent to year-end
D) the purchase of a business

Question

Quizplus · Accepted Answer

A type 2 subsequent event is one that provides evidence about conditions that did not exist at the balance sheet date but arose after that date. The bankruptcy of a customer subsequent to year-end is a type 1 event, as it provides evidence about conditions that existed at the balance sheet date.

Which of the Following Is Not an Example of a Type