'If We Were to Look Only at the Expenses and Income

question 9

Essay

'If we were to look only at the expenses and income … recorded in the income statement we would not get a full picture of all expenses and income that were recognised in the current period'.Explain what this statement means,and other items that need to be 'looked at'?

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Definitions:

Magical

Relating to, invoking, or possessing supernatural powers or qualities.

Proposition

A pronouncement that reveals a judgment or perspective.

Equivalent

Equal in value, amount, function, meaning, etc.

Word Order

The arrangement of words in a sentence to convey meaning, determined by the grammatical rules of a language.