Financial statement users are interested in profit because it may be a predictor of future profit.

Name: Financial statement users are interested in profit because it may be a predictor of future profit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Financial statement users, such as investors and creditors, analyze a company's profit in order to determine its ability to generate future profits and pay off debts. Therefore, profit is a useful predictor of a company's future financial performance.

Financial Statement Users Are Interested in Profit Because It May