A firm's most recent financial statements often serve as the basis for predicting future sales, costs, and expenses.

Question

Quizplus · Accepted Answer

The most recent financial statements provide information on a firm's current financial position and performance, which can be used to predict future sales, costs, and expenses. Thorough analysis of financial statements allows investors and analysts to estimate the future performance and growth potential of a company.

A Firm's Most Recent Financial Statements Often Serve as the Basis