Question

Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a:

Answer 1

Answer:

The correct answer is Partial presentation.

Explanation:

Having the minimum presentation guidelines, the financial statements may be converted to basic statements or otherwise adapted to certain guidelines. The presentation is considered partial if it does not take into account one of the following items: (1) gross sales or income, (2) gross profit or cost of sales, (3) unusual or infrequent items, (4) provision for income taxes, (5) discontinued operations or extraordinary items, (6) income from continuing operations, (7) net income, (8) basic and diluted earnings per share, (9) significant changes in financial position.