Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 8

Comment on the statement that what a company’s income statement reveals is interesting but what it conceals is vital.

Step 1 of 2

A company’s income statement reflects its earning from the projects and future ability to meet its cash requirement. It becomes very interesting to see that what company is reporting in its income statement especially when company is growing. But it shows more dangerous side by concealing and not showing things which should be disclosed in such income statement.