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 is the best indicator of a company's future performance as it represents the amount of profit the company is generating from its ongoing operations, excluding one-time gains and losses. This figure provides a better indication of the company's ability to sustain profits in the future than total revenues, gross profit or profit.

Which of the Following Income Statement Figures Would Probably Be