Doogle Corporation sold a segment of its operations in 2009 and suffered an extraordinary loss in 2010. Which of the following would be the most useful in attempting to predict Doogle's performance for 2011?

Question

Quizplus · Accepted Answer

Doogle's income from continuing operations in 2009 and 2010 would be the most useful in attempting to predict Doogle's performance for 2011 as it would reflect the company's ongoing operations and would not be impacted by the sale of the segment or the extraordinary loss. Net income would not be as useful as it includes one-time events such as the sale and extraordinary loss. Total assets and retained earnings would not necessarily reflect the company's ongoing operations or predict future performance.

Doogle Corporation Sold a Segment of Its Operations in 2009