Compare income of the current period


We can compare income of the current period with income of a previous period to determine whether the operating results are improving or declining:

  1. Only if each accounting period covered is a full year.
  2. Only if the accounting periods are equal in length.
  3. Only if the same accountant prepares the income statement each period.
  4. Only if a manual accounting system is used in both periods.

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Accounting Basics: Compare income of the current period
Reference No:- TGS0688460

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