Business math 2 - Lesson 2

Question 1

Balance sheet answers the following questions:

Answer 1

1. How much a business owns
2. How much a business owes
3. How much is the owner’s financial interest in the business

Question 2

An income statement answers the following questions

Answer 2

1. Are the goals set at the start of the business being met?
2. Is the business making a profit?
3. Are the sales increasing or decreasing?
4. Is the business making more money through sales? Or is it losing money through operation and other types of expenses?

Question 3

Balance sheet

Answer 3

gives the financial status or position of a business on a specific date

Question 4

Income statement

Answer 4

A report/document showing how much a business has earned or lost