Which of the following is a limitation of profit measurement of a firm?
A)It stresses on the qualitative aspects of a firm's financial performance.
B)It is influenced by unpredictable economic environment.
C)It focuses only on the present performance of an organization.
D)It is oriented towards the non-financial goals of an organization.

Question

Quizplus · Accepted Answer

Profit measurement of a firm is limited by the unpredictable economic environment. Factors such as changes in the market conditions and fluctuations in exchange rates may affect the profitability of a firm, leading to inaccuracies in the measurement of profits in financial statements.

Which of the Following Is a Limitation of Profit Measurement