income statement, cash floow and statements of retained earnings

Income statement, cash floow and statements of retained earnings

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THE INCOME STATEMENT, STATEMENT OF COMPREHENSIVE INCOME, RETAINED EARNINGS, AND STATEMENT OF CASH FLOWS I. INCOME STATEMENT (MULTIPLE-STEP) A. Operating Income-Includes revenues and expenses directly related to the principal revenue-generating activities of the company B. Non-operating/Other Income-Includes gains and losses and revenues and expenses related to peripheral or incidental activities of the company. These items may be unusual or infrequent, but not both. If unusual or infrequent, they must be footnoted. C. Income Tax Expense-Income tax on Operating and Non-operating items only = Net Income or Income from Continuing Operations (if additional items exist) Separately Reported Items 1. separated for predictive value 2. must be footnoted 3. must be material 4. must be shown “net of taxes” D.Discontinued Operations-A discontinued operation is the sale or disposal of a component of an entity or a component held for disposal. A component comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity.A component could include:Reportable segments,Operating segments,Reporting units,Subsidiaries,Asset
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This note was uploaded on 12/13/2010 for the course ACCT 112 taught by Professor King during the Spring '08 term at Howard County Community College.

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Income statement, cash floow and statements of retained earnings

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