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

When comparing the income statements of businesses \( X \) and \( Y \), both show negative incomes: \( -\$336 \) for \( X \) and \( -\$366 \) for \( Y \). This indicates that both businesses had expenses that exceeded their revenues during February. The larger negative value for \( Y \) suggests it is in a worse financial position compared to \( X \), losing more money over the same period. In accounting, a zero would represent a break-even point, meaning that a business’s revenues exactly match its expenses. In this scenario, both businesses are operating at a loss, but this communicates that they need to reassess their operations. A zero outcome would indicate stability and no financial loss, a crucial goal for any business seeking to thrive!