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QUESTION IMAGE

which action would help ensure someones net profit stays positive on an…

Question

which action would help ensure someones net profit stays positive on an income statement?
creating a revised budget that encourages riskier investments
making sure total income is larger than total expenses, including payments towards debts
purchasing more property that can serve as collateral for future loans
balancing assets and liabilities to ensure net profit remains steady

Explanation:

Brief Explanations

Net profit is calculated as total income minus total expenses (including debt payments, which are operating/financial expenses). For net profit to stay positive, total income must exceed all total expenses. Riskier investments do not guarantee positive net profit and may increase losses. Purchasing property as collateral affects balance sheet items, not directly net profit on an income statement. Balancing assets and liabilities is a balance sheet focus, not the direct driver of positive net profit on an income statement.

Answer:

B. making sure total income is larger than total expenses, including payments towards debts