Reference no: EM13116277

The occurrence that most likely wold have no effect on 2010 net income is the 

a)stock purchased in 1996 deemed worthless in 2010
b) correction of an error in the financial statements of a prior period discovered subsequent to the issuance
c) sale in 2010 of an office building contributed by a stockholder in 1961
d) collection in 2010 of a dividend from an investment

What might a manager do during the last quarter of a fiscal year if she wanted to decrease current annual net income?
a) delay purchases from suppliers until after the end of the fiscal year
b) pay suppliers all amounts owed
c)relax credit policies for customers
d) delay shipments to customers until after the end of the fiscal year

If a plant assests of a manufacturing company are sold at a gain of $820,000 less related taxes of $250,000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects as:
a) operating income net of applicable taxes, $570,000
b) a gain of $820,000 and an increase in income tax expense of $250,000
c) an extraordinary item net of applicable taxes, $570,000
d) a prior period adjustment net of applicable taxes, $570,000