Which of the Following Situations Would Require Adjustment to or Disclosure

question 63

Multiple Choice

Which of the following situations would require adjustment to or disclosure in the financial statements?

• A)A merger discussion.
• B)The application for a patent on a new production process.
• C)Discussions with a customer that could lead to a 40 percent increase in the entity's sales if agreement is successful.
• D)The bankruptcy of a customer who regularly purchased 30 percent of the company's output.

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