Which affect realizability of accounts receivable should be

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Problem 1: Events that occur after the current year-end but before the financial statements are issued and affect the realizability of accounts receivable should be

a. Discussed in the management annual report.

b. Disclosed in the notes to financial statements.

c. Used to record an adjustment to bad debt expense.

d. An adjustment directly to retained earnings.

Problem 2: Nonadjusting events include all, except

a. A major business combination after reporting period

b. Announcing a plan to discontinue an operation

c. Expropriation of major asset after reporting period

d. Destruction of a major production plant by a fire before the end of the reporting period

Reference no: EM132696655

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