Which of the Following Is Not a Limitation of the Income

question 24

Multiple Choice

Which of the following is not a limitation of the income statement?

• A)Comparability between companies may suffer because companies don't have enough leeway to choose between accounting methods.
• B)The use of different formats by companies within the same industry may hide differences in operating results.
• C)The use of functional classifications, instead of activity classifications, for operating expenses may not provide sufficient information for predicting future cash outflows.
• D)The matching of allocated historical costs against current revenues may not provide an accurate measure of a return on capital.

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Definitions:

Distract

To draw away or divert one's attention or focus from a desired point of concentration.

Think

To engage in the process of considering or reasoning about something.

Facial Feedback Hypothesis

The idea that facial movements can influence emotional experiences.

Discrete Emotional State

A specific, identifiable emotional condition experienced by an individual, distinguished from other emotions by clear boundaries.