Advertiser Co.’s directors voted immediately after year end to double the advertising budget for the coming year and authorized a change in advertising agencies. What is the effect of this event on the year-end statements?

No financial statement revision.

Explanation:

Financial statements are a snap shot of the performance of a business within a given period. The period is always defined and can be a month, a quarter, biannual, or a year.

In this instance the financial statements for the previous year has already been prepared, and Advertiser Co.’s directors voted immediately after year end to double the advertising budget for the coming year and authorized a change in advertising agencies.

There will be no revision of financial statement as this activity happened after the year the financial statement is reporting for.

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.