BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The basic financial equation is
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revenue-profit = loss
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expenses + revenue = profit or loss
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profit-loss = revenue and expenses
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revenue-expenses = profit or loss
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Explanation:
Detailed explanation-1: -The equation is as follows: Assets = Liabilities + Shareholder’s Equity. This equation sets the foundation of double-entry accounting, also known as double-entry bookkeeping, and highlights the structure of the balance sheet.
Detailed explanation-2: -For-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings.
Detailed explanation-3: -An income statement is a financial statement that shows you the company’s income and expenditures. It also shows whether a company is making profit or loss for a given period.
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