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.

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Definitions:

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs.

Marketing Strategy

A comprehensive plan formulated to achieve marketing objectives, including target markets, positioning, and marketing mix decisions.

Multi-segment

A marketing strategy that targets more than one customer segment, acknowledging that different segments have different needs and wants.

Segment Descriptors

Attributes or characteristics used to define and differentiate subsets of a market or population.