The types of nonrecurring items that must be separately stated on an income statement include:
A)gains or losses on equipment sales.
B)gains or losses on discontinued operations.
C)changes in expenses associated with a tax change.
D)all of the answers are acceptable.

Question

Quizplus · Accepted Answer

Gains or losses on discontinued operations must be separately stated on an income statement to provide a clear view of ongoing operations. Choices A and C, while potentially significant, do not specifically require separate statement under typical accounting standards for nonrecurring items.

The Types of Nonrecurring Items That Must Be Separately Stated