E24-2Ind - B 5. Retirement of the company president. B/C 6....

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E24-2 (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. A 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end. C 2. Introduction of a new product line. A 3. Loss of assembly plant due to fire. A 4. Sale of a significant portion of the company’s assets.
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Unformatted text preview: B 5. Retirement of the company president. B/C 6. Prolonged employee strike. B 7. Loss of a significant customer. C 8. Issuance of a significant number of shares of common stock. B 9. Material loss on a year-end receivable because of a customers bankruptcy. B 10. Hiring of a new president. A 11. Settlement of prior years litigation against the company. B 12. Merger with another company of comparable size....
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This note was uploaded on 09/20/2008 for the course ACC 363 taught by Professor Rossi during the Spring '08 term at University of Phoenix.

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