The measurement of profit is useful:
A) As a guide to dividend decisions
B) As a basis for taxation
C) Statements A and B are both correct
D) None of the above

Question

Quizplus · Accepted Answer

Profit is an important factor in making dividend decisions as it indicates the amount of earnings available for distribution among shareholders. Additionally, profit serves as a basis for determining the tax liability of a company. Therefore, both options A and B are correct.

The Measurement of Profit Is Useful