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Which statement is​ true? A. All​ prior-period adjustments are combined with continuing operations on the income...

Which statement is​ true? A. All​ prior-period adjustments are combined with continuing operations on the income statement. B. ​Prior-period adjustments are part of discontinued operations. C. Discontinued operations are a separate category on the income statement. D. All of the above are true.

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Answer #1

Option D. All the above are true.

Prior period items refers only to income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.

Discontinued operations pertains to the elimination of a significant part of a company's business, such as the sale of an entire division of the company. ., the amount of the discontinued operations is separated out and added to the end of the income statement.

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