Financial Statements Are Helpful to Predict the Future Performance of a Company

Multiple Choice

Financial statements are helpful to predict the future performance of a company for all of the following reasons except _____.

A) the evaluation of management's past performance gives clues to its ability to generate future returns
B) the assets and liabilities of a company provide clues to a company's future prospects
C) financial statements are required to give formal projections of management's assessment of the next period's financial results
D) past performance is often a good indicator of future performance