An Income Statement Would Not Include

question 96

Multiple Choice

An income statement would not include

• A)the reduction in prior year's profit from a change in accounting policy.
• B)a loss on disposal of a component of an entity.
• C)an operating loss on discontinued operations.
• D)an unusually large bad debt expense.

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Definitions:

Outstanding Balance

Represents the total amount of money owed on a loan, credit card, or any debt, remaining to be paid.

Operating Expenses

The costs associated with the day-to-day functions of a business, excluding direct production costs.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Unit

A single, distinct element that forms part of a system, often used for measuring, standardization, or as part of a greater whole.