A net loss will result during a time period when
A) liabilities exceed assets.
B) drawings exceed investments.
C) expenses exceed revenues.
D) revenues exceed expenses.

Question

Quizplus · Accepted Answer

A net loss occurs when expenses exceed revenues, meaning that the business is operating at a loss during a certain time period. Choices A and B may affect the financial health of the business but do not necessarily indicate a net loss. Choice D indicates a net profit, not a net loss.

A Net Loss Will Result During a Time Period When