CFA Practice Question

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CFA Practice Question

Which of the following items would not be included in net income or loss for a period?

A. Cumulative effect of accounting changes
B. Prior period adjustments
C. Discontinued operations
Correct Answer: B

The cumulative effects of accounting changes are reported on the income statement. Prior period adjustments are related to earlier accounting periods and are not reported on the current year's income statement.

User Contributed Comments 3

User Comment
oneashok can anyone please explain about prior period adjustments?
oneashok Got it! Prior period adjustments are usualy accounted in a later period... right?
johntan1979 Nope. They are already accounted for and not adjusted for again in the current year's statement.
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