Which of the Following Is the Best Measure of a Company's

question 184

Multiple Choice

Which of the following is the best measure of a company's profitability?

• A)Cash-based net income
• B)Accrual-based net income
• C)Accounts Receivable
• D)Sales Revenue

---

Definitions:

Internal Control Procedures

Processes implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are standardized guidelines and practices for financial accounting and reporting in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for businesses to prepare and disclose their financial statements.

Rules-based

Refers to systems or processes that are governed by a strict set of predefined rules or laws.