Final answer:
Recognized subsequent events are required to be recorded and disclosed in the financial statements, while non-recognized subsequent events are generally not recognized or disclosed.
Step-by-step explanation:
In business, subsequent events can be classified as recognized or non-recognized. Recognized subsequent events are those that occurred after the end of the reporting period but before the financial statements are issued, and they provide additional evidence about conditions that existed at the end of the reporting period. These events are required to be recorded and disclosed in the financial statements. Non-recognized subsequent events are those that occurred after the end of the reporting period and do not provide additional evidence about conditions that existed at the end of the reporting period. These events are generally not recognized or disclosed in the financial statements.