1 / 7

d. Income from Continuing Operations

d. Income from Continuing Operations. d. Income from Continuing Operations. The section “income from continuing operations” includes all revenues, expenses, gains, and losses that are not required to be reported in other sections of an income statement.

mira
Download Presentation

d. Income from Continuing Operations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. d. Income from Continuing Operations

  2. d. Income from Continuing Operations • The section “income from continuing operations” includes all revenues, expenses, gains, and losses that are not required to be reported in other sections of an income statement. • There are two formats for the presentation of income from continuing operations: • The single-step format • The multiple-step format

  3. d. Income from Continuing Operations, cont’d • In the single-step format, items are classified into two groups: • Revenues • Expenses

  4. Example of Single-Step Format: • Revenues: • Sales (net of discounts and returns and allowances) $xxx • Gain on sale of equipment xxx • Interest income xxx • Dividend income xxx $xxx • Expenses: • Cost of goods sold $xxx • Selling expenses xxx • General and administrative expenses xxx • Interest expense xxx • Income from continuing operations xxx $xxx • Income from continuing operations = $xxx + $xxx

  5. d. Income from Continuing Operations, cont’d • In a multiple-step format, operating revenues and expenses are separated from nonoperating revenues and expenses to provide more information concerning the firm’s primary activities.

  6. Examples of common intermediate income components: • Gross profit (margin) • Operating income • Income before income taxes (Example of a multiple-step format on next slide.)

More Related