Income Statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenues over expenses. Discontinued operation: Discontinued operation takes place when the part of the business has been sold or terminated. Income or loss from the discontinued operation would be reported separately in the income statement since that particular business or operation will not continue in the future. Accounting errors: Accounting error is an error in the book keeping which is not done purposely. There are four types of errors. They are Error of commission, Error of Omission, Error of Principle, and Compensating errors. To prepare: The income statement of Corporation M for the year ended 31 st December 2016.

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Chapter 4, Problem 4.3P

To determine

Income Statement:

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenues over expenses.

Discontinued operation:

Discontinued operation takes place when the part of the business has been sold or terminated. Income or loss from the discontinued operation would be reported separately in the income statement since that particular business or operation will not continue in the future.

Accounting errors:

Accounting error is an error in the book keeping which is not done purposely. There are four types of errors. They are Error of commission, Error of Omission, Error of Principle, and Compensating errors.

To prepare: The income statement of Corporation M for the year ended 31^st December 2016.

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