Which of the following subsequent events (post-statement of financial position events) would require adjustment of the accounts before issuance of the financial statements?
A) major losses as a result of a fire in the company's plant
B) decline in the fair value of investments
C) loss on an account receivable (on the books at statement of financial position date) resulting from a customer's bankruptcy
D) lawsuit arising from a customer's injury due to a defective product
Correct Answer:
Verified
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