The Income Statement Is an Important Financial Statement for All

question 1

Multiple Choice

The income statement is an important financial statement for all of the following reasons, except

• A) the income statement helps shareholders evaluate management's operating effectiveness.
• B) past income statements can be useful indicators in predicting current and future cash dividend payments as well as future stock prices.
• C) the income statement provides useful information concerning the corporation's ability to generate sufficient cash flows from operations for use in payment of its operating obligations.
• D) the income statement reports the amount of net cash inflows resulting from operating, financing, and investing activities to users.