Which of the Following Material Events Occurring Subsequent to the Balance

Multiple Choice

Which 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) Loss of a plant as a result of a flood.
C) Major purchase of a business that is expected to double sales volume.
D) Settlement of litigation, in excess of the previously recorded liability.