What are the major types of subsequent events? Indicate how each of the following “subsequent events” would be reported. Collection of a note written off in a prior period. Issuance of a large preferred stock offering. Acquisition of a company in a different industry. Destruction of a major plant in a flood. Death of the company's chief executive officer (CEO). Additional wage costs associated with settlement of a four-week strike. Settlement of a federal income tax case at considerably more tax than anticipated at year-end. Change in the product mix from consumer goods to industrial goods.
What are the major types of subsequent events? Indicate how each of the following “subsequent events” would be reported. Collection of a note written off in a prior period. Issuance of a large preferred stock offering. Acquisition of a company in a different industry. Destruction of a major plant in a flood. Death of the company's chief executive officer (CEO). Additional wage costs associated with settlement of a four-week strike. Settlement of a federal income tax case at considerably more tax than anticipated at year-end. Change in the product mix from consumer goods to industrial goods.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 25E
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What are the major types of subsequent events? Indicate how each of the following “subsequent events” would be reported.
- Collection of a note written off in a prior period.
- Issuance of a large
preferred stock offering. - Acquisition of a company in a different industry.
- Destruction of a major plant in a flood.
- Death of the company's chief executive officer (CEO).
- Additional wage costs associated with settlement of a four-week strike.
- Settlement of a federal income tax case at considerably more tax than anticipated at year-end.
- Change in the product mix from consumer goods to industrial goods.
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