Match the explanation with the advantages and disadvantages of the income statements. Advantage/ Disadvantage Description
1. Can be manipulated and managed. a. The income statements provide confirmatory value.
2. Depends on accounting methods selected. b. The income statements provide predictive value.
3. Predicts future performance. c. Accounting policies determine amounts reported.
4. Evaluates past performance. d. Items cannot be measured reliably and are therefore not reported on the income statements.
5. Excludes certain items. e. Management can bias their judgments. .