The Use of Financial Statements for Predicting Future Earnings and Cash

question 83

Multiple Choice

The use of financial statements for predicting future earnings and cash flows is limited due to

• A)management bias, lack of forward-looking information, and certain inherent limitations.
• B)lack of judgment, management bias, and lack of inclusion of inflationary effects.
• C)lack of forward and backward-looking information.
• D)lack of backward-looking information, the likelihood of management bias, and the omission of historical costs.

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Definitions:

Waiting Time

Waiting time is the duration that a person, object, or data spends waiting to be processed, serviced, or transferred, often analyzed to improve efficiency in operations.