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. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
|---|---|---|---|---|
| 2. | Settlement of prior years litigation against the company at no cost. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 3. | Issuance of a significant number of shares of preferred stock. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 4. | Sale of 10% of the companys assets. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 5. | Prolonged employee strike. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 6. | Gain a significant customer. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 7. | Charges of fraud filed against a vice-president. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 8. | Filing for protection under Chapter 11 of the Bankruptcy Code. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 9. | Acquisition of another company with sales of approximately one-half of the company. | select an option Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust Nor Disclose | ||
| 10. | Loss of an overseas plant due to expropriation. |
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Data Analytics For Accounting
Authors: Vernon Richardson
3rd Edition
1264444907, 9781264444908
