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:

Infant Mortality Rate

The rate at which infants under one year of age die in a given population per 1,000 live births in a year.

Crude Birth Rate

The number of live births per 1,000 people in a population in a given year.

Teenage Pregnancy Rate

The number of pregnancies per 1,000 females aged 15-19 in a given year, a key indicator of reproductive health and socio-economic conditions.

Immigration

The movement of people from one country to another to live or work.