A subsequent event for an entity with a December 31, 2023, year-end and a March 1, 2024, financial statement issuance date would NOT include: a. A change in the estimated useful lives of equipment in January 2024. b. An issuance of bonds in February 2024. c. An acquisition of another company in January 2024. d. A major uncertainty at December 31, 2023, resolved in February 2024.

A subsequent event for an entity with a December 31, 2023, year-end and a March 1, 2024, financial statement issuance date would NOT include: a. A change in the estimated useful lives of equipment in January 2024. b. An issuance of bonds in February 2024. c. An acquisition of another company in January 2024. d. A major uncertainty at December 31, 2023, resolved in February 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

8. A subsequent event for an entity with a December 31, 2023, year-end and a March 1, 2024,
financial statement issuance date would NOT include:
a. A change in the estimated useful lives of equipment in January 2024.
b. An issuance of bonds in February 2024.
c. An acquisition of another company in January 2024.
d. A major uncertainty at December 31, 2023, resolved in February 2024.

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