Which event that occurred after the end of the fiscal year under audit but prior to issuance of the auditor's report would not require disclosure in the financial statements?
A)Sale of a bond or capital stock issue
B)Loss of plant or inventories as a result of fire or flood
C)A significant decline in the market price of the corporation's stock
D)A merger or acquisition

Question

Quizplus · Accepted Answer

A significant decline in the market price of the corporation's stock is a subsequent event that does not require disclosure in the financial statements because it represents a subsequent event that occurred after the end of the fiscal year, but it does not affect the financial statements. The other events listed, such as the sale of a bond or capital stock issue, loss of plant or inventories, or a merger or acquisition, would all require disclosure in the financial statements as they could materially affect the financial statements.

Which Event That Occurred After the End of the Fiscal