Which of the following would NOT be reflected in the income statement?
A) An extraordinary item
B) Cumulative effect of a change in depreciation methods
C) Loss on disposal of a segment of a business
D) Correction of an error in previously issued financial statements

Question

Quizplus · Accepted Answer

The correction of an error in previously issued financial statements is not reflected in the income statement. Instead, such corrections are typically applied retroactively to the financial statements of prior periods. The income statement reflects current period revenues and expenses, not adjustments to prior periods.

Which of the Following Would NOT Be Reflected in the Income