Which of the following would not be considered a subsequent event?
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 subsequent 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

Hiring employees is an operational decision and does not affect the financial statements directly, unlike financial transactions or events that provide additional information about conditions that existed at the balance sheet date.

Which of the Following Would Not Be Considered a Subsequent