The Use of Financial Statements for Predicting Future Earnings and Cash

Multiple Choice

The use of financial statements for predicting future earnings and cash flows is limited due to

A) management bias, lack of forward-looking information, and certain inherent limitations.
B) lack of judgment, management bias, and lack of inclusion of inflationary effects.
C) lack of forward and backward-looking information.
D) lack of backward-looking information, the likelihood of management bias, and the omission of historical costs.