Part 1 dr 2 Accounting Accountants create income statements that show how much money a business earns or loses During the month of February Business \( X \) shows an income of \( \$ \) - 336 and Business \( Y \) shows an income of \( \$ \) - 366 Compare the income statements of businesses \( X \) and \( Y \) Then explain the meaning of zero in this situation Help me solve this View an example

1. **Interpreting the Incomes:** - Business \( X \) shows an income of \( -336 \). - Business \( Y \) shows an income of \( -366 \). The negative values indicate that both businesses incurred losses during February. 2. **Comparing the Income Statements:** - Since \( -336 \) is greater than \( -366 \) (when comparing negative numbers, a number closer to zero is better), Business \( X \) has a smaller loss than Business \( Y \). - In other words, Business \( X \) lost less money than Business \( Y \) during February. 3. **Meaning of Zero:** - A zero income, represented as \( 0 \), would mean that a business neither earned a profit nor incurred a loss. - In practical terms, if a business had an income of \( 0 \), it would have exactly covered its costs without making any gains or losses. This situation is often referred to as "breaking even." Each step shows that although both businesses faced losses, Business \( X \) performed relatively better by losing less money than Business \( Y \), and zero income would imply a neutral financial outcome (neither profit nor loss).