Question $30$ of $31$

Gerry works at Deutsche Bank, an investment bank. Gerry is analyzing the income statement of a company considered as a potential investment. Which of the following is not a limitation of the income statement?

Income measurement involves judgment

Net income is an estimate and reflects a number of assumptions

Income numbers are affected by the accounting methods employed

Companies omit certain items from the income statement that they cannot measure reliably

$28$

Net income provides no basis for predicting future performance