Slide 12-2 Reporting the results of Operations Information about net income is used by investors, creditors, and other financial statement users Normal, recurring Unusual, nonrecurring revenue and expense events that affect transactions net income Income 1. The results of 2. The impact of 3. The effects of from discontinued extraordinary changes in continuing operations items accounting operations. principles Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999?The McGraw-Hill Companies, Inc., 1999 Slide 12-2 Irwin/McGraw-Hill Reporting the Results of Operations Income from continuing operations. Normal, recurring revenue and expense transactions. 1. The results of discontinued operations. 2. The impact of extraordinary items. 3. The effects of changes in accounting principles. Unusual, nonrecurring events that affect net income. Information about net income is used by investors, creditors, and other financial statement users