Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?
A)Culmination of events affecting the realization of accounts receivable owned as of the balance sheet date.
B)Culmination of events affecting the realization of inventories owned as of the balance sheet date.
C)Material changes in the settlement of liabilities that were estimated as of the balance sheet date.
D)Material changes in the quoted market prices of listed investment securities since the balance sheet date.

Question

Quizplus · Accepted Answer

Material changes in the quoted market prices of listed investment securities since the balance sheet date will least likely result in an adjustment to the financial statements because they are measured at fair value, which means that any changes in market prices are already reflected in the financial statements. Whereas, options A, B, and C are events that could potentially require adjustments to the financial statements as they affect the valuation of assets and liabilities that were recorded as of the balance sheet date.

Which of the Following Subsequent Events Will Be Least Likely