A corporation's annual financial statements and reports are criticized because it is claimed that the income statement

Question:

A corporation's annual and reports are criticized because it is claimed that the income statement does not by any means give a clear picture of annual earning power, and the does not disclose the true value of the plant assets. Considering the criticism made, offer an explanation of the nature and purpose of the income statement and of the together with comments on their limitations.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...