Net income is viewed as the best predictor of how a company will perform in future periods.

Name: Net income is viewed as the best predictor of how a company will perform in future periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net income, while important, does not account for cash flow, debt levels, or future investment needs, making it an incomplete predictor of future performance. Other financial metrics and qualitative factors also play crucial roles in assessing a company's future prospects.

Net Income Is Viewed as the Best Predictor of How