ACCY 131 PG-4a Solutions

ACCY 131 PG-4a Solutions - GroupProblemSet#4(PG4...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Group Problem Set #4 (PG 4) Instructions: Please respond to the following (three) problems. This group problem set can be (your choice) completed in groups of no more than four students. Please be sure your responses are appropriately formatted and contain no obvious/glaring spelling and grammatical errors. Attach your completed assignment in the submission dropbox and be sure to include all group member names with your submission. 1. (4 points – Ch 16) Auditors must be concerned with events that occur subsequent to the balance sheet date, because the events may need to be reflected in the financial statements. a. Give two examples of Type I subsequent events b. Give two examples of Type II subsequent events ANS: a. One example of a Type I subsequent event would be the settlement of an ongoing lawsuit where the settlement amount is materially different than the previous litigation accrual. A second example of a Type I subsequent event would be the bankruptcy of a significant customer that results in the cancellation or write off of a material A/R balance. b.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/25/2011 for the course ACCY 131 taught by Professor Ekanayake,c during the Spring '08 term at CSU Sacramento.

Page1 / 2

ACCY 131 PG-4a Solutions - GroupProblemSet#4(PG4...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online