A quasi-reorganization:

a) may produce a positive balance in retained earnings.

b) will restate retained earnings to zero.

c) should appear on the income statement as part of continuing operations.

d) requires the approval of a bankruptcy court.

A quasi-reorganization is an accounting fresh start that enables a small or large company to continue operating after conducting an accounting reorganization of its assets, liabilities, and equity without incurring the time and costs associated with a legal reorganization.

Answer rating: 100% (QA)

A quasi reorganisation is a provision under USGAAP which provides that under certain circu... View the full answer