Reporting unusual items separately on the income statement allows investors to isolate the effects of these items on income and cash flows.

Question

Quizplus · Accepted Answer

Reporting unusual items separately on the income statement allows investors to better understand the underlying performance of a company by isolating the effects of these items on income and cash flows. This information can help investors make more informed decisions regarding their investments.

Reporting Unusual Items Separately on the Income Statement Allows Investors