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Unformatted text preview: Week 2 DQ 2 What are the differences between regular and irregular items on an income statement? Response #1 Some differences between regular and irregular items on an income statement is regular income is paid on a schedule such as weekly or monthly whereas irregular items are not paid on a schedule. Irregular items include discontinued operations, changes in accounting principles, or extraordinary items for example, due to an earthquake. Irregular items are reported separately because this helps creditors and investors predict the future cash flows. Response #2 The regular items are operations that occur on a scheduled time frame and considered normal business operations. On the other hand, irregular items are not common business operations. One of the purposes of the income statement (which include the revenue transformed into the net income) being reported is to present to upper-level personnel and potential creditors and investors whether the organization is losing or marking money in the...
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This note was uploaded on 04/04/2012 for the course ACC 422 taught by Professor Susan during the Spring '08 term at University of Phoenix.
- Spring '08
- Income Statement