Week 8 class 1

Week 8 class 1 - Week 8 class 1 1. 4. Income from...

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1. Income from continuing operations is the result of the entity’s central operations. It is more predictable from period to period than income from discontinued operations and extraordinary items. To provide shareholders and creditors with useful information for predicting future income, income from continuing operations is reported separately from other elements of net income. 4. An accounting change makes it difficult to compare one period’s financial statements with the statements of preceding periods. Without detailed information, investors and creditors can be led to believe that the current year is better or worse than the preceding year when, in fact, the only difference is a change in accounting method. To help investors separate the effects of business operations from those effects generated by a change in accounting method, GAAP require companies to retroactively restate their previous financial statements and the opening balance of retained earnings to reflect
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This note was uploaded on 10/18/2010 for the course ACF ACC220 taught by Professor Fiona during the Spring '08 term at Seneca.

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Week 8 class 1 - Week 8 class 1 1. 4. Income from...

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