- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 6. Income Statement Ratios and Common-Size Analysis
CFA Practice Question
Income statements are classified into sections primarily to distinguish economic income from book income. True or False?
Correct Answer: False
While there may be differences in the way income is measured between financial reporting standards (GAAP) and economic theory, this plays no part in the classification of income statement presentation.
User Contributed Comments 3
| User | Comment |
|---|---|
| vincenthuang | it recognized a seperation of operating transactions from non operating transactions |
| FinanAhmad | it's not about economic value of the income, it's about types of income generated during the period. |
| adidasler | all accounting is book value not market value ... |