Business Income replaces your lost business income in the event of a covered loss. In regards to an apartment building insurance for example, if there is a fire and the tenants have to move out while the contruction is being completed, you will be compensated for your loss of business income.
The extra expense can be used to place your tenants in temporary housing, and may include moving expenses.
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A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
it is neither an expense nor an income
In expenses because they are the cost of doing business
Income = expense + savings&investments Income = expense + savings&investments
it is neither an expense nor an income
Business Income and Extra Expense.
Coverage for loss of income and extra expenses necessary to continue operating following a covered loss.
Business income insurance DOES NOT contain coverage for extra expense, extra expense is a coverage form add on that you must opt to purchase along with the business income. Extra expense coverage can be used to mitigate the business income losses by spending up front money, such as a generator at a food plant to make sure the food isn't spoiled after a fire takes down the connection to the power grid.
Interest expense is shown at debit side of income statement because it is an expense for business.
Consider that you have a small business. If you have a revenue income of Php50,000 and operating expenses of Php10,000, and interest income 0f Php5,000.00 and interest expense of Php2,000.00, how much is your net operating expense? What can you say about the financial position of your small business. Reason out.
Salary is an expense for business and that's why shown under income statement as an expense.
liability
Electricity is not part of balance sheet rather it is an expense and it is shown in income statement of business as expense.
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
it is neither an expense nor an income
Income = expense + savings&investments Income = expense + savings&investments
In expenses because they are the cost of doing business