Which of the Following Income Statement Figures Would Probably Be

question 155

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 operations
• C) Net income
• D) Gross profit

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Definitions:

Written-off

The accounting practice of recognizing that an asset or receivable no longer has value and is unlikely to be collected.

Bad Debts Expense

The cost to a business of uncollectible accounts receivable.

Accounts Receivable

Financial obligations of customers towards a firm for delivered services or goods yet to be paid for.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.