Subsequent events may provide additional information about a condition that existed at the date of the financial statements.

Question

Quizplus · Accepted Answer

Subsequent events refer to events or transactions that occur after the end of the financial reporting period but before the financial statements are issued. Such events may provide additional information about the condition that existed at the date of the financial statements and may require adjustment of the financial statements. Therefore, the given statement is true.

Subsequent Events May Provide Additional Information About a Condition That