Earnings forecasts:
A)estimate future revenue.
B)are calculated by taking net income and dividing by expenses.
C)estimate future net income.
D)are calculated by taking net income estimates and dividing by expense estimates.

Question

Quizplus · Accepted Answer

Earnings forecasts estimate the company's future net income, not revenue or the ratio of net income to expenses. They involve projecting expected revenues and expenses for a future period and determining the resulting net income.

Earnings Forecasts