Accountants have advocated two types of income statements based on differing views of the concept of income: the current operating concept of income and all inclusive concept of income. Earnings are consistent with the current operating concept of income and comprehensive income is consistent with the all inclusive concept of income.

a. Explain the impact of these two concept of income for preparation and presentation of income statement

b. How would the following items be handled under each concept: Selling and administrative expense and accounting changes?

c. Why the comprehensive income is consistent with the capital maintenance concept?