Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. an entity will issue its december 31, 20x1 financi

An entity will issue its December 31, 20X1 financial statements on February 20, 20X2. On...

90.2K

Verified Solution

Question

Accounting

An entity will issue its December 31, 20X1 financial statements on February 20, 20X2. On January 20, 20X2, an earthquake destroyed one of the entitys manufacturing plants. Does the entity recognize the impact of this event in its December 31, 20X1 financial statements? Why or why not?

  1. No, because conditions regarding the event did not exist as of the balance sheet date

2. No, because events occurring after the balance sheet date are never recognized

3. Yes, because conditions regarding the event existed as of the balance sheet date

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Cadmium Nickel Distance Angle 105 85 1 320 48 72 2 189 39 60 3 175 28 49 5 348 18 31 7 63 9 20 9 182 8 16 13 240 6 11 18 318 2 4 20 280 this is the data for these set of questions . thank you very much please clearly...

Statistics
Q

Read the case study and answer the questions When many people think of a traditional, established company, they...

General Management
Q

There are different types of risk involved in foreign exchange. One type of risk is risk...

Finance
Q

10 In the setup shown the string is inextensible and light there is friction at...

Physics
Q

What is the volume of the trough 9 ft 3 ft 7 ft 29 cubic...

Geometry
Q

Use the following graph to obtain the graph of the function found by replacing sin...

Basic Math
Q

By studying the standard deviation formula, given below, explain why the standard deviation of a...

Basic Math
Q

4. A high ratio of liabilities to total assets may indicate all.of the following except:...

Accounting
Q

Pie Corporation acquired 75 percent of Slice Company's ownership on January 1,208, for $96,000. At...

Accounting
Q

Comment on the components of the fraud triangle that led to these events: (a) The...

Accounting
Q

The shares Bond Index Fund (TLThas a mean and annual standard deviation of toma od...

Finance
Q

Jino has purchased a preferred stock of par value Rs. 25 which pays semiannual dividend...

Finance