Explain the significance of the income statement of a business
What will be an ideal response?
Answer: The income statement, or profit-and-loss statement, shows an organization's profit performance over a period of time, typically one year. It summarizes revenue from all sources as well as all expenses, the costs that have arisen in generating revenues. Expenses and income taxes are then subtracted from revenues to show the actual profit or loss of a company, a figure known as net income–also called profit or, informally, the bottom line. By briefly reviewing a company's income statements, you should have a general sense of the company's size, its trend in sales, its major expenses, and the resulting net income or loss.
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Five characteristics influence the rate of adoption of an innovation. One of these is ________
A) marketing expertise B) relative advantage C) packaging attractiveness D) government regulations E) place of value exchange
James purchased liability insurance with a $100,000 limit from Insurer A. When Insurer A denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B
Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer pay? A) Insurer A will pay $10,000 and Insurer B will pay $50,000. B) Insurer A will pay $20,000 and Insurer B will pay $40,000. C) Insurer A will pay $24,000 and Insurer B will pay $36,000. D) Insurer A will pay $40,000 and Insurer B will pay $20,000.