Which of the following would be non-adjusting subsequent event(s)?
A) An insure fire loss shortly after the company's year-end.
B) Bankruptcy filing by the company's major customer, which accounted for 60% of the company's receivables at the balance sheet date.
C) The company announces restructuring plans shortly before its year-end.
D) Sale of goods to Company with good current ratio.

Question

Quizplus · Accepted Answer

An insured fire loss shortly after the company's year-end is a non-adjusting subsequent event because it does not provide additional information about conditions that existed at the balance sheet date.

Which of the Following Would Be Non-Adjusting Subsequent Event(s)