Which of the Following Situations Would Require Adjustment to or Disclosure

question 46

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 client's sales
• D) The bankruptcy of a customer who regularly purchased 30 percent of the company's output

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Definitions:

Minutes

Units of time equal to 60 seconds, used to measure the duration of events.

Suffix

A letter or group of letters added at the end of a word to alter its meaning or form a new word.

Mature

Describes individuals or organisms that have reached a fully developed or advanced stage of growth or development.

Suffix

A letter or group of letters added at the end of a word to form a derivative or to alter its grammatical function.