Homework answers ch11

Homework answers ch11 - Chapter 11 3. The objective of...

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Chapter 11 3. The objective of recasting the income statement is so that the stable, normal, and continuing elements in the income statement can be separated and distinguished from random, erratic, unusual, or nonrecurring elements. Both sets of elements require separate analytical treatment and consideration. Moreover, recasting also aims at identifying those elements included in the income statement that should more properly be included in the operating results of one or more prior periods. 4. The analyst will find data needed for analysis of the results of operations and for their recasting and adjustment in: The income statement and components such as: -Income from continuing operations -Income from discontinued operations -Extraordinary gains and losses -Cumulative effect of changes in accounting principles. The other financial statements and the footnotes thereto. The analyst may also find unusual items segregated within the income statement (generally on a pre-tax basis) but their disclosure is optional. 7.
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This note was uploaded on 02/16/2012 for the course FINA 470 taught by Professor Austin during the Fall '11 term at South Carolina.

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Homework answers ch11 - Chapter 11 3. The objective of...

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