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

Question

Quizplus · Accepted Answer

Income from operations represents the amount of revenue generated by a company's primary business activities after deducting operating expenses. It provides a better indication of a company's future performance as it shows the profitability of the core business operations. Total revenues and net income may not accurately reflect the company's ongoing profitability and comprehensive income includes non-operating items such as gains or losses on investments, which may not be indicative of future performance.

Which of the Following Income Statement Figures Would Probably Be