Question
For each of the following subsequent (post-balance-sheet) events, indicate whether a company should adjust the financial statements, disclose in notes to the financial statements, or
For each of the following subsequent (post-balance-sheet) events, indicate whether a company should adjust the financial statements, disclose in notes to the financial statements, or neither adjust nor disclose. 1. Dismissal of the company president. 2. Settlement of prior years litigation against the company at no cost. 3. Issuance of a significant number of shares of preferred stock. 4. Sale of 10% of the companys assets. 5. Prolonged employee strike. 6. Gain a significant customer. 7. Charges of fraud filed against a vice-president. 8. Filing for protection under Chapter 11 of the Bankruptcy Code. 9. Acquisition of another company with sales of approximately one-half of the company. 10. Loss of an overseas plant due to expropriation.
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