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.
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
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