A net loss results
A) when expenses are greater than revenue.
B) when assets are greater than liabilities.
C) when revenue is greater than expenses.
D) when expenses are greater than assets.

Question

Quizplus · Accepted Answer

A net loss occurs when a company's expenses (such as operating expenses, cost of goods sold, etc.) exceed its revenue (such as sales revenue or service revenue). This means that the company has incurred a loss during a specific period, usually a quarter or a year. The opposite of a net loss is a net profit, which occurs when revenue is greater than expenses.

A Net Loss Results