All empirical evidence supports the all-inclusive income concept.

Question

Quizplus · Accepted Answer

The all-inclusive income concept, which suggests that all changes in wealth and all transactions should be reflected in the income statement, is not universally supported by empirical evidence. Critics argue that including every change in wealth can make income statements less useful for predicting future performance, and not all changes (like unrealized gains or losses) are universally agreed upon to be included in the concept of income.

All Empirical Evidence Supports the All-Inclusive Income Concept