In determining its net income an enterprise should exclude g

In determining its net income, an enterprise should exclude gains or losses arising from.

A. Hurricane damages
B. The write-off of intangibles
C. Unusual sales of fixed assets
D. Correction of an error related to prior year operations.

Solution

Answer : D. Correction of an error related to prior year operations.

Explanation : Prior period adjustments are excluded from determining net income. However the impact of prior period error on retained earnings & net income shall be disclosed separately.