Which of the Following Situations Does NOT Illustrate a Subsequent

Multiple Choice

Which of the following situations does NOT illustrate a subsequent event that requires adjustment to the financial statement numbers?

A) A lawsuit against the auditee that had been ongoing for months is finally concluded: the amount awarded is substantially more than had been estimated.
B) The inventory that was on hand at the balance sheet was sold soon sold after the balance sheet date for a price below its carrying value.
C) A customer who had long been suspected of being in financial difficulty,declares bankruptcy.Based on the filing,amounts previously thought to be collectible will never be recovered.
D) A fire that occurred subsequent to the balance sheet date destroys a substantial amount of inventory that was on-hand at the year-end.