One of the difficulties in understanding and interpreting the income statements is the dispute over when one should recognize revenues.

Question

Quizplus · Accepted Answer

This statement is true as there are different methods for recognizing revenues, such as the cash basis and accrual basis, and companies may have different policies for when they recognize revenues. This can make it challenging for investors and analysts to compare and analyze income statements across different companies.

One of the Difficulties in Understanding and Interpreting the Income