Question

A limitation of using past performance as a basis for judging actual results is that​ ________. A. future conditions can be different from the past B. any undervaluation of profits in the past period is likely to continue C. they tend to distort results when current and past conditions are similar D. any subsequent change in accounting treatment will distort performance evaluation g

Answer 1

Answer:

A. future conditions can be different from the past

Explanation:

A limitation of using past performance as a basis for judging actual results is that​ future conditions can be different from the past. Many factors within a business can change as time progresses and all of which act as variables when determining performance. Therefore a change in one of these variables can drastically change the performance in the present even though everything else in regards to the business is the same as it was in the past.