For each of the following subsequent (post-balance-sheet) events, indicate whether a company should
(a) Adjust the financial statements,
(b) Disclose in notes to the financial statements,
(c) Neither adjust nor disclose.
______ 1. Settlement of prior year’s litigation against the company at no cost.
______ 2. Sale of a 10% of the company’s assets.
______ 3. Gain a significant customer.
______ 4. Filing for protection under Chapter 11 of the Bankruptcy Code.
______ 5. Loss of an overseas plant due to expropriation.
______ 6. Dismissal of the company president.
______ 7. Issuance of a significant number of shares of preferred stock.
______ 8. Prolonged employee strike.
______ 9. Charges of fraud filed against a vice-president.
______ 10. Acquisition of another company with sales of approximately one-half of the company.