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 judgement.
D)income numbers are affected by the accounting methods employed.

Question

Quizplus · Accepted Answer

The income statement can include both actual and estimated amounts in determining net income. Therefore, option B is not a limitation of the income statement. The other options (A, C, and D) are limitations of the income statement.

Limitations of the Income Statement Include All of the Following