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) settlement of litigation when the event giving rise to the claim took place after the balance sheet date

Question

Quizplus · Accepted Answer

A significant decline in the market price of the corporation's stock is considered a non-adjusting event as it does not provide evidence of conditions that existed at the balance sheet date.

Which Event That Occurred After the End of the Fiscal