The income statement provides investors and creditors information that helps them predict
A) the amounts of future cash flows.
B) the timing of future cash flows.
C) the uncertainty of future cash flows.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The income statement provides information about past performance and profitability of a company, which can be used by investors and creditors to predict the amounts, timing, and uncertainty of future cash flows. Therefore, all of the provided choices are correct.

The Income Statement Provides Investors and Creditors Information That Helps