Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Limitations of Income Statement ?

user-image
Question added by Mohamed Abd El Fattah , Manager of Budget and Financial Planning Management , Telecom Egypt
Date Posted: 2023/01/08
Tahir Mehmood
by 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.

More Questions Like This