The income statement is useful in assessing the risk or uncertainty of achieving future cash flows.

Question

Quizplus · Accepted Answer

The income statement provides information about a company's revenues, expenses, and net income, which can be used to assess the company's ability to generate cash flows in the future. By analyzing the trends and patterns in the income statement, investors and analysts can evaluate the risk and uncertainty of achieving the expected cash flows.

The Income Statement Is Useful in Assessing the Risk or Uncertainty