Shortly After Year-End Zero Corporation Was Informed of the Bankruptcy

question 44

Multiple Choice

Shortly after year-end Zero Corporation was informed of the bankruptcy of Bingo.Zero Corporation showed a receivable of $10,000 due from Bingo as of year-end-none of which seems recoverable.The receivable had been questionable for some time as Bingo had been experiencing financial difficulties for the past several years.Yet,Bingo's bankruptcy did not occur until after Zero Corporation's year-end.Under these circumstances: $\begin{array}{c}&\text{The financial}& \text{The event requires financial}& \text{The auditor's report should}\\ &\text{statements should be} & \text{statement disclosure, but no}& \text{be modified for a lack of}\\ &\text{adjusted}&\text{adjustment}& \text{consistency}\\\text { A) } & \text { Yes } & \text { No } & \text { No } \\\text { B) } & \text { Yes } & \text { No } & \text { Yes } \\\text { C) } & \text { No } & \text { Yes } & \text { Yes } \\\text { D) } & \text { No } & \text { Yes } & \text { No }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Incentive Pay

A form of compensation used to motivate employees, usually tied to their performance or accomplishments.

Personal Days

Paid time off that employees can use for personal matters, separate from vacation or sick days.

Project Goal

The specific, planned objectives that a project aims to achieve within a defined timeframe.

Incentive Compensation

A form of payment designed to motivate and compensate employees based on their performance or achievement of specific targets.