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What is the journal entry for paid in advance of the expenses for others company?
Wiki User
∙ 9y ago
Expenses of other company is not recorded and it may be shown as loan to that company.
Wiki User
∙ 9y ago
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Income statement can help the manager of the to know whether their company in a good condition or not and the income statement also show the net income of the company. The company should use efficiently because it will generate the sales for the company. In the financial statement, there will include all the source of finance that use by the company such as sales, interest expenses and others. If the manager know about the information of the sources of finance that use by the company, it can help them to make the decision whether the company should to make the further investment. If the company are efficient to use all the sources of finance, they can make for the new investment of the company. so, this financial statement help the company to make the decision by giving the information of the revenue and expenses of the company.
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