There are many assumptions and estimations made in the accounting, and income is reported according to these assumptions. Therefore, exercising caution is required because various assumptions are followed in the accounting process, and outcomes such as net income represent those considerations. If the assumptions are not well founded, distortions will appear in the income reported. Furthermore, the objectives of GAAP in relation to the income statement are to ensure that transactions belonging to a specific period should be reported in the same period,