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(Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to
(Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose. | ||||||
1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end. | ||||||
2. Introduction of a new product line. | ||||||
3. Loss of assembly plant due to fire. | ||||||
4. Sale of a significant portion of the company's assets. | ||||||
5. Retirement of the company president. | ||||||
6. Issuance of a significant number of shares of common stock. | ||||||
7. Loss of a significant customer. | ||||||
8. Prolonged employee strike. | ||||||
9. Material loss on a year-end receivable because of customer's bankruptcy. | ||||||
10. Hiring of a new president. | ||||||
11. Settlement of prior year's litigation against the company. | ||||||
12. Merger with another company of comparable size. | ||||||
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