Asked by Crissy Hogue on Jul 08, 2024

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Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

Unusual Items

Financial events that are not typical for the normal business operations and are unlikely to recur, affecting a company's financial statements.

Accounting Principles

Fundamental guidelines or rules that underpin the process of accounting, including concepts like the matching principle, revenue recognition, and historical cost.

  • Understand the impacts of unusual items and changes in accounting principles on financial statements and ratios.
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Shaik AbdulJul 15, 2024
Final Answer :
False
Explanation :
Unusual items affecting the current period's income statement typically include one-time events such as restructuring costs, impairments, or gains/losses from asset sales, but not changes in accounting principles. Changes in accounting principles are accounted for retrospectively, not as items in the current period's income statement.