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:

Nonunion Setting

A workplace environment where a labor union does not represent the employees.

Grievance Process

describes the formal mechanism through which employees can raise complaints or concerns regarding workplace issues, conditions, or violations of rights for resolution.

Union Contract

A legally binding agreement between an employer and a labor union representing the workers, outlining wages, hours, benefits, and working conditions.

Contract Bargaining

The process of negotiating the terms and conditions of employment between an employer and a group of employees or their representatives.