Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 4 - Income Statement and Related Information - Review and Practice - Questions - Page 179: 8


Caution ought to be observed because numerous estimates and assumptions are made in accounting, and the income amount is an impression of these assumptions. In the event that under any circumstances the suspicions are not well established, distortions will show up in the income reported.

Work Step by Step

The aim of using the generally accepted accounting principles for the income statement is to gauge and report the consequences of operations as they happen for a predetermined period without perceiving any artificial modifications or exclusions.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.