A limitation of using past performance as a basis for judging actual results is that ________.
A) future conditions can be different from the past
B) any undervaluation of profits in the past period is likely to continue
C) any subsequent change in accounting treatment will distort performance evaluation
D) they tend to distort results when current and past conditions are similar

Question

Quizplus · Accepted Answer

Future conditions can be different from the past, which can result in different outcomes and make it difficult to accurately predict actual results based solely on past performance.

A Limitation of Using Past Performance as a Basis for Judging