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 on the past performance of the enterprise, which can be used by users to evaluate its financial health and profitability. This information can also be used to provide a basis for predicting future performance and assessing the risk or uncertainty of achieving future cash flows. Therefore, all three options are correct.

Information in the Income Statement Helps Users to