Which of the following is considered to be a limitation of income statements?
A) Income statements depend on accounting methods selected.
B) Income statements evaluate past performance.
C) Income statements assess uncertainties of achieving future cash flows.
D) Income statements predict future performance.

Question

Quizplus · Accepted Answer

Income statements can vary based on the accounting methods chosen, such as FIFO or LIFO for inventory, which can affect the reported income.

Which of the Following Is Considered to Be a Limitation