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Discontinued Operations and Extraordinary Items
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Problem 10
Discontinued Operations and Extraordinary Items
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14. Financial Statement Analysis / Discontinued Operations and Extraordinary Items / Problem 3
Problem 3
Why is it important to separate non-recurring items from continuing operations on the income statement?
A
To ensure they are included in the calculation of gross profit.
B
To increase the overall net income reported.
C
To comply with tax regulations.
D
To prevent them from obscuring the financial performance of the business.
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