Reference no: EM133011446
Problem 1: A subsequent event for an entity with a December 31, 2021, year-end would not include:
a. a change in the estimated useful lives of equipment in January 2022.
b. an issuance of bonds in January 2022.
c. an acquisition of another company in January 2022.
d. a major uncertainty at December 31, resolved in January 2022.
Problem 2: An example of an error would be
a. purchasing inventory from a related party.
b. counting an inventory item twice when taking a physical inventory.
c. holding back invoices so that accounts payable are understated.
d. receiving kickbacks in exchange for issuing a purchase order to a vendor.
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