Which of the Following Statements Regarding Limitations of the Income

question 32

Multiple Choice

Which of the following statements regarding limitations of the income statement is not true?

• A)The net income amount includes estimated expenses that are subject to change.
• B)Numerous available accounting methods may cause a lack of comparability.
• C)Rigid accounting rules may lead to distorted earnings amounts.
• D)The current income statement allows several income items to be directly put on the retained earnings statement.

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Definitions:

Source Traits

Fundamental personality characteristics that are inferred from consistent behavior patterns and are believed to be the origin of observable behaviors.

Environmental-mold Traits

Characteristics of personality believed to be shaped by environmental factors rather than genetic inheritance.

Constitutional Traits

Source traits that depend on our physiological characteristics.

Source Traits

Fundamental personality characteristics that are stable over time and across situations, forming the foundation of an individual's personality.