Which of the following material events occurring after the balance sheet date, but before the...
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Accounting
Which of the following material events occurring after the balance sheet date, but before the end of audit fieldwork, would require an adjustment to the financial statements?
A. The client settles a lawsuit that is disclosed as a contingent liability.
B. The client loses one of its three inventory warehouses as a result of a fire.
C. The client issues a highly material amount of new stock.
D. The client sells a major subsidiary of its business.
E. None of the above.
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