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Which ONE of the following is an adjusting event in Wright's financial statements which were signed off by the directors of the company eight weeks
Which ONE of the following is an adjusting event in Wright's financial statements which were signed off by the directors of the company eight weeks after the year end? One month after the year end a court determined a case against Wright and awarded damages of 50,000 to one of Wright's customers. Wright had expected to lose the case and had set up a provision of 30,000 at the year end. A dispute with workers caused all production to cease six weeks after the year end. A month after the year end Wright's directors decided to cease production of one of its three product lines and to close the production facility. Three weeks after the year end a fire destroyed Wright's main warehouse facility and most of its inventory. All losses were covered by insurance
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