Chapter 4, Problem 2UJ

a.

To determine

Concept Introduction:

Financial statement: The business operations and financial success of an organization are described in financial statements, which are written records. To ensure accuracy and for the imposition of tax, financing, or investing purposes, financial statements are frequently audited by government entities, accountants, and corporations.

Requirement 1

The type of income format that company C and company P use and the difference in their income statement format.

b.

To determine

Concept Introduction:

Financial statement: Financial statements are written documents that provide information about an organization's business operations and financial performance. These statements play a crucial role in evaluating the success of a company. To ensure their accuracy and for various purposes such as taxation, financing, or investment decisions, financial statements undergo regular audits by government bodies, professional accountants, and companies themselves.

Requirement 2

Company P and Company C’s gross profits, operating profits, net incomes, and net income attributable to non-controlling interests for the period 2015-2017 and the company that had better financial outcomes in this time period.

c.

To determine

Concept Introduction:

Financial statement: The business operations and financial success of an organization are described in financial statements, which are written records. To ensure accuracy and for the imposition of tax, financing, or investing purposes, financial statements are frequently audited by government entities, accountants, and corporations.

Requirement 3

Income statement format that both companies used to report comprehensive income.