BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To report financial position
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To show the difference between net profit and net loss
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To repeat the Profit and Loss Summary account
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To report on a business’s profit performance over a period of time
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Detailed explanation-1: -The income statement shows a company’s expense, income, gains, and losses, which can be put into a mathematical equation to arrive at the net profit or loss for that time period. This information helps you make timely decisions to make sure that your business is on a good financial footing.
Detailed explanation-2: -Since the income statement calculates a company’s net profit or loss, knowing the time period covered facilitates financial analysis. When analyzing financial data, the user can identify positive or negative trends and areas that may require further attention.
Detailed explanation-3: -An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement, that report a company’s financial performance over a specific accounting period. The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.
Detailed explanation-4: -The statement of financial position for a company is often referred to as the balance sheet. It is used to report the assets, liabilities, and equity of a business on a given date – a summary, or snapshot, of its overall value at a certain point in time.
Detailed explanation-5: -A profit and loss (or income) statement lists your sales and expenses. It tells you how much profit you’re making, or how much you’re losing. You usually complete a profit and loss statement every month, quarter or year.