Which of the Following Income Statement Figures Would Probably Be

question 13

Multiple Choice

Which of the following income statement figures would probably be the best indicator of a company's future performance?

• A) Total revenues.
• B) Income from operation.
• C) Net income.
• D) Comprehensive income.

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Definitions:

Sales

The activities involved in selling goods or services in return for money or other compensation.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue.

Net Margin

A profitability metric that calculates the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Balanced Scorecard

A system for strategic planning and management utilized by organizations to ensure business activities are in line with the organization’s vision and strategy, enhance communications both internally and externally, and track the performance of the organization in relation to its strategic objectives.