Answer (A) is correct . The current operating performance concept emphasizes the ordinary, normal, recurring operations of the entity during the current period. In this view, the inclusion of extraordinary items or prior-period adjustments is believed to impair the significance of net income. (The current operating performance concept is not recognized under U.S.?GAAP.)
Answer (B) is incorrect because Extraordinary items are excluded under the current operating performance concept.
Answer (C) is incorrect because Prior-period adjustments are excluded under the current operating performance concept.
Answer (D) is incorrect because Gains and losses from extinguishment of debt are extraordinary.
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