1. In discussing a firm's latest financial statements, a manager says that it is the results on...

Question:

1. In discussing a firm's latest financial statements, a manager says that it is the "results on the bottom line" that really count. What does the manager mean?

2. If a firm's expenses equal or exceed its revenue, what actions might management take?

3. How can management find out, at any time, whether a firm can pay its bills as they become due?

4. How do the income statement and the balance sheet help management make sound decisions?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...