Which of the following is not a purpose of the income statement?
A) used to evaluate management's performance
B) predicts the company's future assets and liabilities
C) used to compare performance against other companies
D) assesses the company's risk

Question

Quizplus · Accepted Answer

The income statement primarily reflects a company's revenues, expenses, and profits over a period, which helps in evaluating management's performance, comparing performance against other companies, and assessing risk. It does not directly predict the company's future assets and liabilities; that analysis would involve other financial statements like the balance sheet and cash flow statement.

Which of the Following Is Not a Purpose of the Income