Which of the following is false about an income statement?
A) Items that cannot be measured reliably are not reported in the income statement.
B) It is used to measure the solvency of a company.
C) Income measurement involves judgment.
D) Income numbers are affected by the accounting methods employed.

Question

Quizplus · Accepted Answer

An income statement is used to measure the profitability of a company, not its solvency.

Which of the Following Is False About an Income Statement