Which of the following is not a generally practiced method of presenting the income statement?
A)Including corrections of errors made in a prior period
B)The single-step income statement
C)The consolidated statement of income
D)Including gains and losses from discontinued operations of a segment of a business in determining net income

Question

Quizplus · Accepted Answer

Generally, corrections of errors made in a prior period are not included in the income statement. They are adjusted in the prior period's financial statements through a restatement or other appropriate method. The other options listed (single-step income statement, consolidated statement of income, and including gains and losses from discontinued operations) are all commonly used methods of presenting the income statement.

Which of the Following Is Not a Generally Practiced Method