Which of the Following Subsequent Events Will Be Least Likely

question 80

Multiple Choice

Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?

• A)Culmination of events affecting the realization of accounts receivable owned as of the balance sheet date.
• B)Culmination of events affecting the realization of inventories owned as of the balance sheet date.
• C)Material changes in the settlement of liabilities that were estimated as of the balance sheet date.
• D)Material changes in the quoted market prices of listed investment securities since the balance sheet date.

---

Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained within the business for reinvestment or to pay debt, rather than being distributed to shareholders as dividends.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.

Shareholders

Persons or organizations that possess stock in a corporation, thus holding a stake in the business.