The Occurrence That Most Likely Would Have No Effect on 2015

question 60

Multiple Choice

The occurrence that most likely would have no effect on 2015 net income is the

• A)sale in 2015 of an office building contributed by a stockholder in 1966.
• B)collection in 2015 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 2001 deemed worthless in 2015.

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Definitions:

Freight

The charge paid for the transport of goods by sea, air, or land, typically from the supplier to the receiver, influencing the cost of goods sold and inventory valuations.

Discount Period

The time frame in which a payment can be made at a discounted price, usually before a specified due date.

Inventory

The goods and materials that a business holds for the purpose of resale or use in production.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, interest rate, and other terms of payback.