Events that occur after the December 31, 2015 statement of financial position date (but before the statement of financial position is authorized to be issued) and provide additional evidence about conditions that existed at the statement of financial position date and affect the realizability of accounts receivable should be
A)discussed only in the Management commentary section of the annual report.
B)disclosed only in the Notes to the Financial Statements.
C)used to record an adjustment to Accounts Receivable at December 31, 2015.
D)used to record an adjustment directly to the Retained Earnings account

Question

Quizplus · Accepted Answer

These events are considered adjusting events because they provide additional evidence about conditions that existed at the statement of financial position date, thus requiring an adjustment to the accounts affected, such as Accounts Receivable.

Events That Occur After the December 31, 2015 Statement of Financial