Which of the following subsequent events (post-balance-sheet events) would require adjustment of the accounts before issuance of the financial statements?
A. Loss of plant as a result of fire
B. Changes in the quoted market prices of securities held as an investment
C. Loss on an uncollectible account receivable resulting from a customer's major flood loss
D. Loss on a lawsuit, the outcome of which was deemed uncertain at year end.
Ans: D. Loss on a lawsuit, the outcome of which was deemed uncertain at year end.
Business
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Investing activities usually involve long-term liability and stockholders' equity accounts.
a. true b. false
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