This preview shows page 1. Sign up to view the full content.
Unformatted text preview: contains information about revenues and expenses and net income as that information has been accumulated for a stated period of time. Net income occurs when revenues exceed expenses. A net loss occurs when expenses exceed revenues. What types of management decision may be derived from both of these statements? Both of these financial statements help show the current standing position of a business. The Income statement shows whether or not the business has a net income or a net loss, which is important to see the financial progress. The balance sheet indicates the financial condition of a business, meaning its financial strength. This is important to know because if a business is not financially strong, changes in the economy might cause a business to fail...
View Full Document
- Spring '11