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Which of the following statements is not true in measuring earnings? For the income measurement, there are two approaches such as transaction approach and capital
Which of the following statements is not true in measuring earnings?
For the income measurement, there are two approaches such as transaction approach and capital maintenance concept
Capital maintenance approach is more related to measurement problem, while transaction approach is more related to revenue recognition issues.
The current GAAP is based on the transaction approach framework, but is moving toward capital maintenance concept approach.
the transaction approach is more focused on the accounts on balance sheet.
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