By focusing only on the income statement,we do not obtain a full picture of all the gains and losses that may have occurred for an entity during the period.

Question

Quizplus · Accepted Answer

The income statement only shows the revenue and expenses of an entity during a specific period, but it does not reflect other gains and losses, such as changes in the value of assets, investments, or changes in equity. Therefore, it does not provide a complete picture of an entity's financial performance.

By Focusing Only on the Income Statement,we Do Not Obtain