Companies report prior period adjustments, net of any income tax effects in the:

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21-06-2018
Business

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Companies report prior period adjustments, net of any income tax effects in the:

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jamuuj jamuuj · Answer 1 · 2018-07-02T14:47:54+02:00

Companies report prior period adjustments, net of any income tax effects in the single-step income statement.
A single step income statement is one of two commonly used formats for the income statement or profit and loss statement. It uses only one subtraction to arrive at net income. On the other hand, a multi-step statement reveals the company's gross profit, which is the difference between its sales revenue and its cost of goods sold, and operating profit, which is the difference between its gross profit and its operating expenses.