For each of the following subsequent [post-balance-sheet] events, indicate whether a company should [a] adjust the financial statements, [b] disclose in notes to the financial statements, or [c] neither adjust nor disclose.
A. Retirement of the company president.
B. Prolonged employee strike.
C. Loss of a significant customer.
D. Issuance of a significant number of shares of common stock.
E. Material loss on a year-end receivable because of a customer’s bankruptcy.
F. Hiring of a new president.
G. Settlement of prior year’s litigation against the company.
H. Merger with another company of comparable size.
I. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end.
J. Introduction of a new product line.
K. Loss of assembly plant due to fire.
L. Sale of a significant portion of the company’s assets.