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Because Home Inspectors Are Not Allowed to Profit from Any

question 9

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Because home inspectors are not allowed to profit from any repairs they recommend, there is a reduction in:


Definitions:

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Cash Dividends

Payments made by a corporation to its shareholders from its profits or reserves.

Primary Beneficiary

The primary beneficiary is the entity that has the controlling financial interest in a variable interest entity, and thus is the party that consolidates the entity's financial statements with its own.

Consolidation

The process of merging multiple financial statements of a parent company and its subsidiaries into a single, aggregated document for reporting purposes.

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