A strength of the income statement as compared to the balance sheet is that items that cannot be measured reliably can be reported in the income statement.

Question

Quizplus · Accepted Answer

The income statement only reports items that can be measured reliably, while the balance sheet reports both measurable assets and liabilities as well as certain estimated items such as allowances for bad debts or accrued expenses.

A Strength of the Income Statement as Compared to the Balance