The best measure of a firm's sustainable income is

Question

Quizplus · Accepted Answer

The income from continuing operations is the best measure of a firm's sustainable income as it represents the income generated by the core operations of the business, excluding any one-time or non-recurring items. This measure provides a more accurate picture of the company's long-term profitability and ability to sustain its earnings over time. Operating income is also a good measure for sustainable income, but it may not capture all of the company's recurring expenses. Income before extraordinary items and changes in accounting principle can be affected by unusual or non-recurring events, while net income includes all items, including those that may not be sustainable over the long term.

The Best Measure of a Firm's Sustainable Income Is