BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If we have net income, our income statement shows what? (Hint:There are two correct statements; select both.)
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Revenue > Expenses
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Expenses > Revenue
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Revenue > Liabilities
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(Revenue-Expenses) > 0
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Explanation:
Detailed explanation-1: -Two income-statement-based indicators of profitability are net profit margin and gross profit margin.
Detailed explanation-2: -There are two different types of income statement that a company can prepare such as the single-step income statement and the multi-step income statement.
Detailed explanation-3: -Net income (NI) is known as the “bottom line” as it appears as the last line on the income statement once all expenses, interest, and taxes have been subtracted from revenues.
Detailed explanation-4: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement.
There is 1 question to complete.