Information in the income statement helps users to
A)evaluate the past performance of the enterprise.
B)provide a basis for predicting future performance.
C)help assess the risk or uncertainty of achieving future cash flows.
D)all of these.

Question

Quizplus · Accepted Answer

The income statement provides information about the past performance of the enterprise, which helps users evaluate the profitability and efficiency of operations. It also provides a basis for predicting future performance by identifying trends and patterns in expenses and revenue. Additionally, the income statement can help assess the risk or uncertainty of achieving future cash flows by providing information about the company's ability to generate profits and manage expenses.

Information in the Income Statement Helps Users to