Which of the following subsequent events might require an adjustment to the client's financial statements?
A) A business combination with another company.
B) Loss on the sale of a closely-held investment.
C) Loss of plant and equipment due to a fire.
D) Retirement of bonds payable at a loss.

Question

Quizplus · Accepted Answer

A loss on the sale of a closely-held investment may indicate that the investment was overvalued in the financial statements, requiring an adjustment to reflect its fair value.

Which of the Following Subsequent Events Might Require an Adjustment