Which one of the following types of losses is excluded from the determination of net income on the statement of income?
A) Material losses resulting from transactions in the company's investments account.
B) Material losses resulting from unusual sales of assets not acquired for resale.
C) Material losses resulting from the write-off of intangibles.
D) Material losses resulting from correction of errors related to prior periods.

Question

Quizplus · Accepted Answer

Material losses resulting from correction of errors related to prior periods are excluded from the determination of net income on the statement of income. These are typically corrected by restating prior period financial statements, not included in current period income.

Which One of the Following Types of Losses Is Excluded