A net loss results in a decrease in
A)revenues.
B)expenses.
C)owner's equity.
D)liabilities.

Name: A net loss results in a decrease in A)revenues. B)expenses. C)owner's equity. D)liabilities.
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Question

Quizplus · Accepted Answer

A net loss occurs when expenses exceed revenues, which leads to a decrease in owner's equity. Owner's equity is the residual interest in the assets of a business after liabilities are deducted. Therefore, a net loss does not directly affect liabilities or expenses.

A Net Loss Results in a Decrease in