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4. XYZ company's fiscal year 2021 covers the period from 01/01/2021 to 12/31/2021. The audit report date for the 2021 fiscal year is 03/07/2022, and the 10-K disclosure date is 03/09/2022. On 02/03/2022, one of XYZ's major clients, ABC company experienced an unexpected fire in its warehouse. As a result, ABC is not able to pay for a note payable to XYZ on 03/01/2022, which was the scheduled payment date. Based on the description above, XYZ should a. Adjust financial statements b. Disclose the events/activities c. Issue a restatement d. None of above

4. XYZ company's fiscal year 2021 covers the period from 01/01/2021 to 12/31/2021. The audit report date for the 2021 fiscal year is 03/07/2022, and the 10-K disclosure date is 03/09/2022. On 02/03/2022, one of XYZ's major clients, ABC company experienced an unexpected fire in its warehouse. As a result, ABC is not able to pay for a note payable to XYZ on 03/01/2022, which was the scheduled payment date. Based on the description above, XYZ should a. Adjust financial statements b. Disclose the events/activities c. Issue a restatement d. None of above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. XYZ company's fiscal year 2021 covers the period from 01/01/2021 to 12/31/2021. The audit report date for the 2021 fiscal year is 03/07/2022, and the 10-K disclosure date is 03/09/2022. On 02/03/2022, one of XYZ's major clients, ABC company experienced an unexpected fire in its warehouse. As a result, ABC is not able to pay for a note payable to XYZ on 03/01/2022, which was the scheduled payment date. Based on the description above, XYZ should a. Adjust financial statements b. Disclose the events/activities c. Issue a restatement d. None of above
Transcribed Image Text:4. XYZ company's fiscal year 2021 covers the period from 01/01/2021 to 12/31/2021. The audit report date for the 2021 fiscal year is 03/07/2022, and the 10-K disclosure date is 03/09/2022. On 02/03/2022, one of XYZ's major clients, ABC company experienced an unexpected fire in its warehouse. As a result, ABC is not able to pay for a note payable to XYZ on 03/01/2022, which was the scheduled payment date. Based on the description above, XYZ should a. Adjust financial statements b. Disclose the events/activities c. Issue a restatement d. None of above
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