A Type I subsequent event should _______.
A)not require an adjustment to the financial statements
B)always require an adjustment to the financial statements
C)be disclosed in the notes to the financial statements only
D)should be referred to management to determine disclosure requirements

Question

Quizplus · Accepted Answer

A Type I subsequent event provides additional information about conditions that existed at the date of the balance sheet and, therefore, should always require an adjustment to the financial statements to accurately reflect the financial position at the balance sheet date.

A Type I Subsequent Event Should _______