P4-41A. (Learning Objectives 2, 4: Aggregating information for presentation on the Income Statement) Roberts Home Repair Services

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P4-41A. (Learning Objectives 2, 4: Aggregating information for presentation on the Income Statement) Robert’s Home Repair Services had the following balances at the end of 20X4 and 20X5.

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Requirements 1. Assuming that Robert would like to disclose no more than what is required by accounting standards, with the maximum level of aggregation possible, prepare an Income Statement to such effect.
2. Why would it not be possible for Robert to simply show a three-line Income Statement, one that simply lists total revenue, total expenses, and net profit?
3. How should Robert decide which line items are important enough to be shown separately on the Income Statement and which ones to aggregate?

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Financial Accounting International Financial Reporting Standards Global Edition

ISBN: 9781292211145

11th Edition

Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison

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