Which of the Following Subsequent Events (Post-Balance-Sheet Events) Would Require

question 49

Multiple Choice

Which of the following subsequent events (post-balance-sheet events) would require adjustment of the accounts before issuance of the financial statements?

• A) Loss of plant as a result of fire
• B) Changes in the quoted market prices of securities held as an investment
• C) Loss on an uncollectible account receivable resulting from a customer's major flood loss
• D) Loss on a lawsuit, the outcome of which was deemed uncertain at year end.

---

Definitions:

Axial Methyl

A methyl group attached to a cyclohexane ring in a position parallel to the axis of the ring, leading to higher steric strain compared to equatorial positions.

Equatorial Methyl

A methyl group bonded to a carbon atom in a cyclohexane ring being in a position that extends outward from the perimeter of the ring, reducing steric strain.

Axial Positions

Locations on a molecule, especially in cyclic compounds like cyclohexane, that are perpendicular to the plane of the ring, typically leading to higher steric strain.

Cis-1,3-Dimethylcyclohexane

An isomer of dimethylcyclohexane where the two methyl groups are located on the same side of the cyclohexane ring.