Which One of the Following Material Events Occurring Subsequent to the Balance

Multiple Choice

Which one of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued?

A) Sale of long- term debt or capital stock
B) Major purchase of a business that is expected to double the sales volume
C) Settlement of litigation in excess of the recorded liability
D) Loss of a plant as a result of a flood