The Income Statement Is More Frequently Used Than the Balance

question 48

Multiple Choice

The income statement is more frequently used than the balance sheet by investors to:

• A)assess current management performance over an accounting period.
• B)as a guide to company future profitability at a moment in time.
• C)assess current management performance and as a guide to company future profitability at a moment in time.
• D)assess current management performance and as a guide to company future profitability over an accounting period.

---

Definitions:

Frustrated

The feeling of being upset or annoyed as a result of being unable to change or achieve something.

Open Systems

A concept in systems theory that describes entities or organizations which interact with their environment by exchanging energy, information, or materials.

General Systems Theory

A theoretical framework that views systems—whether biological, social, or physical—as coherent entities made up of interrelated and interdependent parts.

Continuous Exchange

An ongoing process of giving and receiving, often referring to information, goods, or services in various contexts.