The April 1996 issue of the Journal of Accountancy includes an article by Dennis R. Beresford, L.

Question:

The April 1996 issue of the Journal of Accountancy includes an article by Dennis R. Beresford, L. Todd Johnson, and Cheri L. Reither, entitled “Is a Second Income Statement Needed?”

Instructions Read the article and answer the following questions.

(a) On what basis would the “second income statement” be prepared? Briefly describe this basis.

(b) Why is there a perceived need for a second income statement?

(c) Identify three alternatives for reporting the proposed measure of income.

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