Question

The occurrence that most likely would have no effect on current year net income is the Group of answer choices sale in current year of an office building contributed by a stockholder in 45 years ago. collection in current year of a dividend from an investment. correction of an error in the financial statements of a prior period discovered subsequent to their issuance. stock purchased 14 years ago deemed worthless in the current year.

Answer 1

Correction of an error in the financial statements of a prior period that was discovered before issuance.

Step-by-step explanation:

A prior period adjustment is the correction of an accounting error that occurred in the past and was recorded on a prior year financial statements which is corrected by adjusting the carrying amount of the impacted assets and liabilities as of the first accounting period reported , with an offset to the beginning retained earning balance in that same period

The retrospective correction of prior period error as described above does not affect the current period figures but only the prior period comparative figures.