Which of the following is true about the information provided in the income statement?
A) It helps in evaluating the past performance of the enterprise.
B) It provides a basis for predicting future performance.
C) It helps assess the risk or uncertainty of achieving future cash flows.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The income statement provides information about past performance, which can be used to evaluate how the enterprise has done in the past. It also provides insight into the revenue and expenses of the enterprise, which can be used to predict future performance. Finally, the income statement can help assess the risk or uncertainty of achieving future cash flows, as it provides insight into the financial health and performance of the enterprise. Therefore, all of the answer choices are correct.

Which of the Following Is True About the Information Provided