Under generally acceptable accounting principles, two companies with identical operating results may not report identical net incomes.

Question

Quizplus · Accepted Answer

This is because there are various accounting methods and principles that can be used, which may affect how revenue and expenses are recognized and reported in the financial statements. Additionally, factors such as taxes and non-operating gains or losses can also impact the reported net income.

Under Generally Acceptable Accounting Principles, Two Companies with Identical Operating