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Accountants have advocated two types of income statements based on differing views of the concept of income: the current operating performance and all-inclusive concepts of income.
You are required to:
(a) Discuss the general nature of these two concepts of income.
(b) How would the following items be handled under each concept?
(i) Cost of goods sold
(ii) Selling expenses
(iii) Extraordinary items
(iv) Prior period adjustments
Note: Support your statements with scholarly peer-reviewed and professional business peer-reviewed publications
Financial Statement Analysis and Preparation
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