Which of the Following Is Considered a Disadvantage of the Statement

question 16

Multiple Choice

Which of the following is considered a disadvantage of the statement of value added?

• A) Could cause confusion with the statement of comprehensive income
• B) Costs may exceed benefits
• C) May be regarded as a preferable way of describing performance
• D) All answers are correct

---

Definitions:

Received Cash

The inflow of cash to a business, recorded on the financial statements when cash is received from customers, loans, or other sources.

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.