In preparing the financial statements for December 31, 2015, an accountant improperly classified the payment of prepaid rent as rent expense.Which of the following amounts would not be affected by this improper classification?
A)Retained earnings, January 1, 2015
B)Retained earnings, December 31, 2015
C)Net income
D)Total assets

Question

Quizplus · Accepted Answer

Retained earnings, January 1, 2015, would not be affected by the improper classification because it pertains to the beginning balance of the year, which is not influenced by transactions occurring during the year.

In Preparing the Financial Statements for December 31, 2015, an Accountant