Accrual-basis net income is most useful for
A) determining the amount of income tax a company should pay.
B) predicting the short-term performance of an enterprise.
C) predicting the long-term performance of an enterprise.
D) determining the amount of dividends a company should pay.

Question

Quizplus · Accepted Answer

Accrual-basis net income includes all revenue and expenses, regardless of whether they have been received or paid, allowing for a more accurate picture of the company's long-term financial performance.

Accrual-Basis Net Income Is Most Useful for