Sustainable income differs from actual profit by the amount of
A)irregular revenues, expenses, gains and losses.
B)dividends declared.
C)changes in accounting policies.
D)comprehensive income.

Question

Quizplus · Accepted Answer

Sustainable income is the level of income a company is able to maintain over the long-term, considering factors such as irregular revenues, expenses, gains and losses. Actual profit is simply the amount of money a company earns in a given period of time. Therefore, the difference between sustainable income and actual profit is the amount of irregular revenues, expenses, gains and losses that affect actual profit but not sustainable income.

Sustainable Income Differs from Actual Profit by the Amount of