On a projected income statement, a business owner's target income is the sum of a reasonable salary for the time spent running the business and a normal return on the amount the owner has invested in it.

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Quizplus · Accepted Answer

This statement is true. A projected income statement includes the target income, which is the sum of a reasonable salary for the owner and a normal return on the owner's investment in the business. This target income is used to determine the necessary revenue and profits the business must generate to be successful.

On a Projected Income Statement, a Business Owner's Target Income