Which of the Following Is Not a Generally Practiced Method

question 59

Multiple Choice

Which of the following is not a generally practiced method of presenting the income statement?

• A) Including prior period adjustments in determining net income.
• B) The condensed income statement.
• C) The consolidated income statement.
• D) Including gains and losses from discontinued operations of a component of a business in determining net income.

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Definitions:

Government Spending

The total amount of money spent by the government, including expenditures on public services, defense, infrastructure, and social welfare programs.

Transfer Payments

Payments made by governments to individuals without the expectation of any goods or services in return, aimed at providing economic support.

Taxes

Compulsory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Disposable Income

Money left after taxes and social security contributions have been subtracted, which can be either spent or saved according to personal preference.