Income statements contain which of the following sections or categories, depending on the nature of a firm's earnings for the period?
A)income from continuing operations
B)income, gains, and losses from discontinued operations
C)extraordinary gains and losses
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Income statements typically include all of the listed sections or categories, depending on a firm's earnings for the period. Income from continuing operations represents the primary source of revenue for ongoing business activities, while income, gains, and losses from discontinued operations relate to the disposal or cessation of separate parts of the company. Extraordinary gains and losses may arise from unusual events or transactions outside the ordinary course of business, such as natural disasters, lawsuits, or mergers.

Income Statements Contain Which of the Following Sections or Categories