Fut 1 cl 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 \( \$-214 \) and Business \( Y \) shows an income of \( \$-164 \) Compare the income statements of businesses \( X \) and \( Y \) Then explain the meaning of zero in this situation. -214 - 164

When comparing the income statements of Business X and Business Y, we see that both have reported losses for the month of February, with Business X losing $214 and Business Y $164. This indicates that both businesses spent more than they earned, but the loss of Business X is greater, suggesting it may have higher expenses or lower revenues compared to Business Y. In this context, a zero income statement would imply a break-even point where the business neither makes a profit nor incurs a loss. This could indicate a balanced financial situation where total revenues equal total expenses, providing an opportunity for improvement or reinvestment without the pressure of losses.