For each of the following subsequent events, indicate whether the financial stat

ID: 2498935 • Letter: F

Question

For each of the following subsequent events, indicate whether the financial statements should be:

(A) adjusted;

(D) the event should be disclosed in the financial statements; or

(ND) the event need not be disclosed.

Subsequent Event Action taken

1. An employee strike is called.

2. A lawsuit that was begun a year ago is settled after the Balance sheet date.

3. A new subsidiary is purchased.

4. A major customer of the company is lost.

5. A significant decline in the value of inventories occurs.

6. A plant of the company is destroyed by fire.

1. An employee strike is called. - Neither adjust nor can disclose in the financial statement .

2. A lawsuit that was begun a year ago is settled after the Balance sheet date.:- it need to be Adjusted

3. A new subsidiary is purchased:- it need to be Adjusted

4. A major customer of the company is lost:- Neither adjust nor can disclose in the financial statement

5. A significant decline in the value of inventories occurs.:- it need to be Adjusted

6. A plant of the company is destroyed by fire:- Neither adjust nor can disclose in the financial statement

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