Answer to Question #235770 in Accounting for Sukh

Question

Should Augusta continue its current business or look for more profible business opportunities? Is it income statement , cash flow statement or Balance sheet

Answer 1

Solution:

This is an income statement.

 

An income statement is one of the core financial statements that show the company’s revenues and expenses during a particular period and whether the company is making a profit or loss.

An income statement will show Augusta the status of her current business, whether it is making a loss or profit. If the business is making losses, then Augusta can look for more profitable business opportunities, but if it is making profits then she can continue with the current business.