Which of the Following Material Events Occurring Subsequent to the Balance

question 48

Multiple Choice

Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued?

• A)Sale of long-term debt or capital stock.
• B)Loss of a plant as a result of a flood.
• C)Major purchase of a business that is expected to double sales volume.
• D)Settlement of litigation, in excess of the previously recorded liability.

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Definitions:

Molecular Biologist

A scientist who studies the molecular basis of biological activities and processes.

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The medial compartment of the thoracic cavity, situated between the lungs, containing the heart, thymus, esophagus, trachea, and major blood vessels.

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A muscular tube that conveys food and liquids from the mouth to the stomach.