Which of the following income statement figures would probably be the best indicator of a company's future performance?
A) Total revenues
B) Income from operations
C) Net income
D) Gross profit

Question

Quizplus · Accepted Answer

Income from operations shows the company's profitability from its core business activities, which is a strong indicator of its future performance. Total revenues and gross profit can be affected by one-time events or changes in accounting practices, while net income can be affected by non-operating items such as interest and taxes.

Which of the Following Income Statement Figures Would Probably Be