How can an income statement help you stay solvent?
What will be an ideal response?
Answer: An income statement can help you stay solvent by indicating whether or not you're earning more than you spend. If you're spending too much, your income statement will show you exactly where your money is going, which will allow you to quickly spot any problem areas. If you do not spend frivolously, your income statement will indicate how much of your income is available for saving and for meeting financial goals.
You might also like to view...
The petty cash fund had an initial imprest balance of $200. It currently has $17 in cash, $5 in miscellaneous cash receipts, and an additional $173 in specific cash receipts. The debit to Cash Short & Over would be ________
A) $5 B) $17 C) $173 D) $178
An "incipient market" is a market that will emerge if a particular economic, demographic, political, or sociocultural trend continues in a country
Indicate whether the statement is true or false