Which of the following income statement figures would probably be the best indicator of a company's future performance?
A)total revenues
B)gross profit
C)profit
D)profit from continuing operations

Question

Quizplus · Accepted Answer

Profit from continuing operations represents the company's ongoing and sustainable profitability, as it excludes one-time gains or losses and reflects the performance of the company's core business operations. This makes it a better indicator of future performance than total revenues or gross profit, which can be affected by temporary factors such as changes in market conditions or input costs. Profit is also affected by non-operational factors such as interest and taxes, which can make it less reliable as an indicator of future performance.

Which of the Following Income Statement Figures Would Probably Be