Counting Crows Inc. provided the following information for the year 2012. AccountingPrepare (a) a single step income
Question:
Counting Crows Inc. provided the following information for the year 2012.
AccountingPrepare (a) a single step income statement for 2012, (b) a retained earnings statement for 2012, and (c) a statement of comprehensive income using the second income statement format. Shares outstanding during 2012 were 100,000.AnalysisExplain how a multiple-step income statement format can provide useful information to a financial statement user.PrinciplesIn a recent meeting with its auditor, Counting Crows?? management argued that the company should be able to prepare a pro forma income statement with some one-time administrative expenses reported similar to extraordinary items and discontinued operations. Is such reporting consistent with the qualitative characteristics of accounting information as discussed in the conceptual framework?Explain.
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