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S1:A client's customer who was already experiencing financial difficulties as of the balance sheet date declaring bankruptcy before the financial statements are issued is an example of a subsequent event that will require adjustment of the financial statements. S2: Loss of inventories as a result of flood is an example of events that may require financial statement disclosure and adjustment.    a. BOTH STATEMENTS ARE TRUE  b. BOTH STATEMENTS ARE FALSE  c. ONLY S1 IS TRUE  d. ONLY S2 IS TRUE

S1:A client's customer who was already experiencing financial difficulties as of the balance sheet date declaring bankruptcy before the financial statements are issued is an example of a subsequent event that will require adjustment of the financial statements. S2: Loss of inventories as a result of flood is an example of events that may require financial statement disclosure and adjustment.    a. BOTH STATEMENTS ARE TRUE  b. BOTH STATEMENTS ARE FALSE  c. ONLY S1 IS TRUE  d. ONLY S2 IS TRUE

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S1:A client's customer who was already experiencing financial difficulties as of the balance sheet date declaring bankruptcy before the financial statements are issued is an example of a subsequent event that will require adjustment of the financial statements. S2: Loss of inventories as a result of flood is an example of events that may require financial statement disclosure and adjustment. 

 

a. BOTH STATEMENTS ARE TRUE 

b. BOTH STATEMENTS ARE FALSE 

c. ONLY S1 IS TRUE 

d. ONLY S2 IS TRUE 

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