 | The Income Statement and Statement of Cash Flows
After studying this chapter, you should be able to:- LO1 Discuss the importance of income from continuing operations and describe its components.
- LO2 Describe earnings quality and how it is impacted by management practices to manipulate earnings.
- LO3 Discuss the components of operating and nonoperating income and their relationship to earnings quality.
- LO4 Define what constitutes discontinued operations and describe the appropriate income statement presentation for these transactions.
- LO5 Define extraordinary items and describe the appropriate income statement presentation for these transactions.
- LO6 Describe the measurement and reporting requirements for a change in accounting principle.
- LO7 Explain the accounting treatments of changes in estimates and correction of errors.
- LO8 Define earnings per share (EPS) and explain required disclosures of EPS for certain income statement components.
- LO9 Explain the difference between net income and comprehensive income and how we report components of the difference.
- LO10 Describe the purpose of the statement of cash flows.
- LO11 Identify and describe the various classifications of cash flows presented in a statement of cash flows.
|
|