One objective of the income statement is to separate the results of continuing operations from those of discontinued operations.

Question

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One of the objectives of the income statement is to provide investors and stakeholders with a clear understanding of the financial performance of a company by separating the results of continuing operations from those of discontinued operations. This helps in evaluating the core performance of a company and identifying any exceptional or one-time items that might have affected its financials.

One Objective of the Income Statement Is to Separate the Results