Distinguish between operating and nonoperating income in relation to the income statement.

What is the difference between a contribution approach income statement and a traditionalapproach income statement?

Explain how to report various income items.

What is meant by the terms elements and items as theyrelate to the income statement? Why might items have tobe disclosed in the income statement?

If a functional expense classification is used for the statement of comprehensive income, what must also be disclosed?

What is a functional expense statement?

Distinguish between operating income and net income?

How do gross profits, operating income, and net income differ?

What is the strategy based on the income statement?

What is net operating income approach, what are the assumptions of this approach. In what conditions it is appropriate to use this approach. How the calculations are made, explain with an example.