Which of the following is the best measure of a company's profitability?
A)Cash-based net income
B)Accrual-based net income
C)Accounts Receivable
D)Sales Revenue

Question

Quizplus · Accepted Answer

Business activities have financial effects even when they don't involve cash.That's why accrual accounting exists.When accurately reported,accrual-based net income is the best measure of a company's profitability during the period.

Which of the Following Is the Best Measure of a Company's