Which One of the Following Subsequent Events Will Least Likely

question 128

Multiple Choice

Which one of the following subsequent events will least likely result in an adjustment to the financial statements?

• A)Material change in the amount of settlement of a lawsuit which had been estimated at year end.
• B)Bankruptcy of a customer who owes your client a material amount on open account at year end for which there is an inadequate allowance estimate.
• C)Sale of a large block of inventory at a price materially below carrying value.
• D)Signing of a letter-of-intent by the client to acquire 55% of another entity for stock.

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Definitions:

Sediment

Particles that settle at the bottom of a liquid or are transported by fluid movements, commonly found in natural and industrial processes.

Blood Clots

Masses that result from the coagulation of blood, often obstructing blood flow in the circulatory system.

Spinal Cord Injury

Damage to the spinal cord that results in a loss of function, such as mobility or sensation.

Drug Screening

The process of testing individuals for the presence of drugs or their metabolites in the body, often used by employers, law enforcement, and medical professionals.