Which of the Following Income Statement Figures Probably Would Be

question 33

Multiple Choice

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

• A) Total revenues
• B) Income from continuing operations
• C) Net income
• D) Income before extraordinary items

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Definitions:

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Comprehensive Income

Total change in equity for a reporting period that includes all non-owner changes in equity, not just those resulting from net income.

Net Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, leading to the net income or profit.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.