Question
Employing different accounting methods will yield different net incomes. How is this factor a limitation of financial statements? A Choice between cash-based accounting and accrual
Employing different accounting methods will yield different net incomes. How is this factor a limitation of financial statements? A Choice between cash-based accounting and accrual accounting for financial reporting allows companies to smooth earnings for a longer period. B The flexibility of employing different methods for presentation of financial statements can lead to inaccurate disclosure of information. C Difference in results due to variations in accounting methods makes it difficult for users to compare the performance of separate entities. D Change in net income due to change in accounting methods affects the determination of future performance of a company.
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