The occurrence that most likely would have no effect on 2007 net income is the
A)sale in 2007 of an office building contributed by a stockholder in 1961.
B)collection in 2007 of a dividend from an investment.
C)correction of an error in the financial statements of a prior period discovered subsequent to their issuance.
D)stock purchased in 1993 deemed worthless in 2007.

Question

Quizplus · Accepted Answer

The correction of an error in the financial statements of a prior period is accounted for as a prior period adjustment and does not affect the current year's net income.

The Occurrence That Most Likely Would Have No Effect on 2007