The Occurrence Which Most Likely Would Have No Effect on 2015

question 31

Multiple Choice

The occurrence which most likely would have no effect on 2015 net income (assuming that all amounts involved are material) is the

• A)sale in 2015 of an office building contributed by a stockholder in 1987.
• B)collection in 2015 of a receivable from a customer whose account was written off in 2014 by a charge to the allowance account.
• C)settlement based on litigation in 2015 of previously unrecognized damages from a serious accident which occurred in 2013.
• D)worthlessness determined in 2015 of stock purchased on a speculative basis in 2011.

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Definitions:

Laissez-faire Leadership

A leadership style where the leader takes a hands-off approach, allowing team members to make decisions and solve problems on their own.

Trait Approach

A perspective in psychology that focuses on the identification and measurement of specific characteristics that differentiate individuals.

Empowering Leadership

A leadership style focused on delegating power to employees, encouraging them to take initiative and make decisions.

Power Sharing

Power sharing involves distributing authority and decision-making power among multiple entities or individuals within an organization or system.