Which of the following is not a generally practiced method of presenting the income statement?
A) Including prior period adjustments in determining net income.
B) The condensed income statement.
C) The consolidated income statement.
D) Including gains and losses from discontinued operations of a component of a business in determining net income.

Question

Quizplus · Accepted Answer

Including prior period adjustments in determining net income is not a generally practiced method for presenting the income statement. Prior period adjustments are typically reflected directly in retained earnings rather than affecting the current period's net income. They are adjustments made to correct errors in previously issued financial statements.

Which of the Following Is Not a Generally Practiced Method