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Limitations of Income Statement ?

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تم إضافة السؤال من قبل Mohamed Abd El Fattah , Manager of Budget and Financial Planning Management , Telecom Egypt Treasury and Risk Management Sector
تاريخ النشر: 2023/01/08
Tahir Mehmood
من قبل Tahir Mehmood , Store keeper -& Document controller & Data entry & Procurement section & Purchasing Section , Albawani.co

The limitations of income statement are as follows: Income is reported based on the accounting rules and does not represent the actual cash changing hands. There will be variation in the way inventory is calculated (either FIFO or LIFO) and therefore income statements cannot be compared.

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