Question

Explain why the income statement can also be called a "profit-and-loss statement." What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? Explain why the income statement can also be called a "profit-and-loss statement." (Select from the drop-down menus.) t h at the top and ends with In reviewing the income statement of a profitable company, one can see that it begins with at the bottom. Had there been a loss for the year, the final result What exactly does the word balance mean in the title of the balance sheet? Why do we bal the answers that apply.) sales revenue interest expense operating expenses taxes A. The balance sheet balances the firm's assets against its financing, which can be all B. The total value of all of the firm's assets should equal the sum of its short and long C. In order for the balance sheet to balance, stockholder's equity must exclude prefer common stock and retained earnings from previous profitable years in which some D. When the balance sheet does not balance, the difference must be reported as an not profits before taxes lue, paid in capital in excess of par on id not paid out as dividends. two halves to balance net profits after taxes net loss after taxes cost of goods sold operating profits (EBIT) gross profits Click to select your answer(s).

Answer 1

As per rules I am answering the first 4 subparts of the question

Statement 1: Sales Revenue, Net Profits after tax,

2: Net loss after tax

(The Income statement depicts the Net revenues minus all expenses and computes the Net Profit/Loss after interest and taxes)

3: A and B

(The Assets must equal the sum of Liabilities and Equity which means balancing the sources of funds against its uses. Option C and D are incorrect since the Balance sheet must tally of double entry has been correct)