Which of the following subsequent events (post-balance-sheet events) would require adjustment of the accounts before issuance of the financial statements?
Loss of plant as a result of fire
Changes in the quoted market prices of securities held as an investment
Loss on an uncollectible account receivable resulting from a customer's major flood loss
Loss on a lawsuit, the outcome of which was deemed uncertain at year end.
Loss on a lawsuit, the outcome of which was deemed uncertain at year end. ...
The solution explains the correct alternative in relation to post balance sheet events