Limitations of the income statement include all of the following EXCEPT
A) items that cannot be measured reliably are not reported.
B) only actual amounts are reported in determining net income.
C) income measurement involves the use of estimates.
D) income numbers are affected by the accounting methods used.

Question

Quizplus · Accepted Answer

The statement is false. The income statement also includes estimates and projections, not just actual amounts. Therefore, the limitation does not include only actual amounts on the income statement.

Limitations of the Income Statement Include All of the Following