Answer to Question #140775 in Accounting for Audrey

Question

Question text

Most of companies in Kenya have put a lot of resources that focus on how businesses should adapt to counter the effects of the COVID-19 pandemic. Normally, when starting a financial review, you start with revenues at the top of the income statement and work your way down through sales costs and overhead expenses. In these unique times, it’s better to flip this approach and focus on expenses first and speak to revenues second. Discuss

Answer 1

It is really important to cut costs and hold revenues at some acceptable level which is possible to reach because of the consequences of COVID-19. So, the firms should review their costs and try to decrease some of them if it is possible to stay in the market.