The net income is a calculation to help determine the viability of a company. The revenue from any source, minus expenses, equals the net income. This initially seems simple, but when analyzing the net income, you should factor in timeliness and match up expenses with the income derived. Answer the following questions related to presentation of information in an income statement: Why caution must be exercised when using the net income figure derived in an income statement for analysis? What are the objectives of generally accepted accounting principles in their application to the income statement? Can the income numbers be overstated or understated?