CFA Practice Question

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CFA Practice Question

Income statements are classified into sections primarily to distinguish economic income from book income. True or False?
Correct Answer: False

While there may be differences in the way income is measured between financial reporting standards (GAAP) and economic theory, this plays no part in the classification of income statement presentation.

User Contributed Comments 3

User Comment
vincenthuang it recognized a seperation of operating transactions from non operating transactions
FinanAhmad it's not about economic value of the income, it's about types of income generated during the period.
adidasler all accounting is book value not market value ...
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