Which of the following items need not be reported separately at the bottom of the income statement?
A) Profitability ratios
B) Discontinued operations
C) Extraordinary gains and losses
D) Cumulative effect of a change in accounting principle

Question

Quizplus · Accepted Answer

Profitability ratios are not reported separately at the bottom of the income statement. They are calculated using the financial data presented in the income statement and other financial statements. The items that need to be reported separately at the bottom of the income statement include discontinued operations, extraordinary gains and losses, and cumulative effect of a change in accounting principle.

Which of the Following Items Need Not Be Reported Separately