Vidyalelo
Commerce · Q48

Accounting

Graduate and Post Graduate · Commerce · question 48

Q48

Net loss occurs when

A.
Expenses are greater than income
Answer
B.
Expenses are less than income
C.
Expenses = Income
D.
Liabilities are greater than income

Answer: Option A

Solution

Answer: Option A
Solution:
Net loss occurs when Expenses are greater than income. A net loss, sometimes referred to as a net operating loss (NOL), occurs when expenses exceed the income or total revenue produced for a given period of time.