A Corporation Discovered the Following Information Subsequent to the Year

question 115

Multiple Choice

A corporation discovered the following information subsequent to the year 1 balance sheet date, but prior to its issuance: (A) the corporation will be able to sell $20,000 common shares as originally planned.
(B) The president of the corporation had a heart attack five days after the balance sheet date.
(C) a long-time major customer filed for bankruptcy and would not be able to pay the large debt owed to the company.
(D) due to an electrical shortage, the estimated useful life of a large machine was reduced by three years.
How many of the above items must be disclosed in the tabular portion of the year 1 financial statements?

• A) One
• B) Two
• C) Three
• D) Four

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Definitions:

Dissociation Curve

A graphical representation of the relationship between the saturation of a substance (e.g., oxygen in hemoglobin) and the concentration or pressure of that substance.

Chloride Ions

Negatively charged ions (Cl-) that play critical roles in the body, including maintaining fluid balance and contributing to acid-base balance.

Hemoglobin

Hemoglobin is a protein in red blood cells responsible for transporting oxygen from the lungs to the rest of the body and returning carbon dioxide from the body to the lungs for exhalation.

Equilibrium

Equilibrium refers to a state of balance between opposing forces or actions, such as in chemical reactions reaching a state where forward and backward reaction rates are equal.