Final answer:
The statement is true; events occurring after a company's fiscal year-end but before the financial statements are released are termed subsequent events and must be disclosed if significant.the answer is true
Step-by-step explanation:
The statement given is true. An event that occurs after a company's fiscal year-end but before the financial statements are issued is known as a subsequent event. These events can be significant and provide relevant information that affects the financial statements and, therefore, should be disclosed. For instance, if a lawsuit is settled or a major customer goes bankrupt after the fiscal year-end but before the financial statements are published, this information needs to be disclosed as it can significantly impact a company's financial position and the user's understanding of the financial statements.
In the context of what we have discussed regarding the annual budget deficit or surplus, which is the difference between the tax revenue collected and spending over a fiscal year, it is important to consider any subsequent events that could affect the final financial outcome for the fiscal period in question. The fiscal year of the U.S. government starts on October 1 and ends on September 30 of the following year, so any significant developments during this period should be reflected properly in the financial statements or disclosures.