Accounting standards divide subsequent events into two categories-those that provide more information about facts thai already existed at the balance sheet date (Type 1) and those that involve facts after the balance sheet date (Type 2) Match each definition or example with the correct type of subsequent event. Conditions that have come into existence after the balance sheet date Type 1 Type 2 During the audit, a customer with a large A/R balance at year-end declares bankruptcy Additional evidence about conditions that existed at the balance sheet date. A flood damages a significant portion of the operating facility after year-end A lawsuit that was in progress as of year-end was settled shortly thereafter Reset