An income statement would not include
A)the reduction in prior year's profit from a change in accounting policy.
B)a loss on disposal of a component of an entity.
C)an operating loss on discontinued operations.
D)an unusually large bad debt expense.

Question

Quizplus · Accepted Answer

An income statement includes revenues, expenses, gains, and losses related to the ongoing operations of the business during the current period. A reduction in prior year's profit from a change in accounting policy is a retrospective adjustment and, therefore, not included in the income statement of the current period.

An Income Statement Would Not Include