Easy Question Income Statement

Anonymous
timer Asked: Jul 8th, 2014
account_balance_wallet $5

Question Description

Which is correct:

The income statement for a given year say 2012 is designed to give us an idea of how much the firm earned during that year

The focal point of the income statement is the cash account, because that account cannot be manipulated by "accountin tricks"

The reported income of two otherwise identical firms cannot be manipulated by different accounting procedures provided the firms follow GAAP

The reported income of two otherwise identicla firms must be identical if the firms are publicly owned, provided they follow procedurces that are permitted by Securities and Exchange Commisstion

If a firm follows GAAP then its reported net income will be identicla to its reported net cash flow.

Tutor Answer

Alex Z
School: Purdue University

The correct choice is: The income statement for a given year say 2012 is designed to give us an idea of how much the firm earned during that year

flag Report DMCA
Review

Anonymous
Excellent job

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors