Question

Which one of the following types of losses is excluded from the determination of net income in income statements? Material losses resulting from transactions in the company's investments account. Material losses resulting from the write-off of intangibles. Material losses resulting from correction of errors related to prior periods. Material losses resulting from unusual sales of assets not acquired for resale.

Answer 1

Answer: The correct answer is "Material losses resulting from correction of errors related to prior periods.".

Explanation: It is generally established that the type of loss that is excluded from the determination of net income in the income statement are the material losses resulting from transactions in the company's investments account.