Topic:Income Statement FormatAccountants have advocated two types of income statements based on differingviews of the concept of income: thecurrent operating performanceandall-inclusiveconcepts of income.

Required:

a. Discuss the general nature of these two concepts of income.

b. How would the following items be handled under each concept?

i. Cost of goods sold

ii. Selling expenses

iii. Extraordinary items

iv. Prior period adjustments