CFA Practice Question

There are 534 practice questions for this study session.

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. Extraordinary items
D. Discontinued operations
Correct Answer: B

The cumulative effects of accounting changes are reported on the income statement after extraordinary items. 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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