1. January 7, 2014: Hollis Mfg. Corporation introduced a new line of products. Which of the following is correct? A. This should be disclosed in the audit report B. Adjusting entry should be made to 2013 financial statements C. Both A and B D. Neither A nor B

2. January 4, 2014: Hollis Mfg. Corporation got a returned check form its bank because it approved to be uncollectible. The check was from a customer and was deposited with the bank on 12/31/2013. The check was in account. Hollis recorded the check as cash receipt on 12/30/2013. Which of the following is correct? A. This should be disclosed in the audit report B. Adjusting entry should be made to 2013 financial statement C. This should be disclosed in the notes to the financial statement D. None of the answers are correct.

3. January 4, 2014: the company treasurer died in an airplane crash. Which of the following is correct? (1) A. This should be disclosed in the audit report B. This should be disclosed in the notes to the financial statements (not sure) C. Both A and B D. None of the answers are correct