Answer
Elements such as revenues, gains, losses, and expenses are some of the ingredients of the income statement. On the other hand, items such as rent expense and rent revenue are the specific descriptions of the elements. For future prediction, the values of individual items may have to be disclosed to eradicate the comprehension barriers.
Work Step by Step
For instance, income from continuing operations may be a lower figure for the current period than for the previous period, and information users may not be aware what is to blame for this.
