An example of a Type II event or condition is an uncollectible account receivable resulting from deterioration in a customer's financial condition prior to year end, about which the entity is unaware. The customer declares bankruptcy after the balance sheet date but prior to the issuance of the financial statements. True/False

Question

Clarissa Proctor

Business

27 July, 19:00

An example of a Type II event or condition is an uncollectible account receivable resulting from deterioration in a customer's financial condition prior to year end, about which the entity is unaware. The customer declares bankruptcy after the balance sheet date but prior to the issuance of the financial statements. True/False

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Mueller · Answer 1

Answer: It is false

Explanation:

Type II event Subsequent Events. The definition of a subsequent events are generally defined as events that occurs after the year end period but before the financial statements have been issued.