1 a Loss of a plant as a result of fire. b. Settlement of prior years' litigation cost against the company c. Changes in the quoted market prices of securities held as an investment d Loss of a significant e. All incorrect 2. Which of the following "subsequent events would require adjustment of the accounts before issuing of the financial statements? e. One of the following "subsequent events" would not require adjustment of the accounts before issuing the financial statements: a. Loss of a significant customer 6. Hiring of a new CEO C. Sale of a significant portion of the company's assets d. Merger with another company of comparable size e. All correct 3. Which is the following is a criterion to determine a reportable segment: b. a. Its revenues are less than 10% of the combined revenue of all operating segments Its operating profit is equal of more than 75% of the combined operating profit o operating segments C. Its revenues are less 75% of the combined sale revenues of the operating segmen Its revenues are equal or more than 10% of the combined revenue of all operatin segments d. None of the above correct 4. Presented below are four segments that have been identified by Haley Productions- Operating Profit (Loss) Segments A B Total Revenue (Unaffiliated) $200,000 100,000 25,000 15,000 $20,000 (5,000) 10,000 500 Identifiable Assets $900,000 800,000 450,000 225,000 D For which of the segments would information have to be disclosed in accordanc professional pronouncements? a. Segments A, B, C, and D (b) Segments A, B, and C c. Segments A and B d. Segments A and D e. All incorrect a. Unmodified b. Disclaimer (c.) Qualified d. Adverse e. All incorrect 5. When the auditor's examination for the financial statement results in i- opinion that contains an exception that is not of sufficient magnitude to inv financial statements as a whole, the opinion would be