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Multiple choice

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.

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Loss on a lawsuit, the outcome of which was deemed uncertain at year end. ...

Solution Summary

The solution explains the correct alternative in relation to post balance sheet events

$2.19