Which one of the following types of losses is excluded from the determination of net income in the income statement?
A) material losses resulting from correction of errors related to prior periods
B) material losses resulting from sale of assets not originally acquired for resale
C) material losses resulting from write off of intangibles
D) material losses resulting from sale of investments

Question

Quizplus · Accepted Answer

Material losses resulting from correction of errors related to prior periods are considered prior period adjustments and are not included in the determination of net income in the current period's income statement.

Which One of the Following Types of Losses Is Excluded