Which of the following income statement figures probably would be the best predictor of a corporation's future performance?

Question

Quizplus · Accepted Answer

Income from continuing operations is the best predictor of a corporation's future performance because it reflects the company's ongoing profitability and excludes one-time gains or losses that can skew the results. Total revenues may not accurately reflect profitability, as higher revenues may come at a higher cost. Net income can be affected by extraordinary items or one-time gains or losses. Income before extraordinary items also includes gains or losses that are not part of the company's ongoing operations.

Which of the Following Income Statement Figures Probably Would Be