Final answer:
The income statement does not measure the increase in assets but rather shows the company's financial performance—revenues and expenses—over a period, whereas a T-account represents the balance between a firm's total assets and liabilities including net worth.
Step-by-step explanation:
The statement that an income statement measures the increase in the assets of a firm over a period of time is false. An income statement actually measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.
The T-account is a separate concept; it is a tool used for the visual representation of accounting records that displays the balance of an account. In a T-account, the total assets are always on the left side, while the liabilities and net worth (or equity) of a firm are recorded on the right side. The total assets should equal the sum of liabilities and net worth, which is indicative of a balanced account following the accounting equation: Assets = Liabilities + Equity.