Which of the following would not be considered a subsequent event to financial 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.

Question

Quizplus · Accepted Answer

Subsequent events to financial statements typically include significant events that can affect the financial position or performance of a company, such as bankruptcy of a major customer, major purchases, incurring substantial debt, or issuing substantial stock. Hiring employees for a new store, while an operational decision, does not directly impact the financial statements in the same way and is generally not considered a significant subsequent event requiring disclosure.

Which of the Following Would Not Be Considered a Subsequent