When expenses exceed revenues,the result is called:
A)Net assets.
B)Negative equity.
C)Net loss.
D)Net income.
E)A liability.

Question

Quizplus · Accepted Answer

When expenses exceed revenues, the company is operating at a loss, which is referred to as a net loss. This can decrease the equity of the company but does not necessarily indicate negative equity unless the company's liabilities exceed its assets. Net assets and liabilities are the difference between assets and liabilities and do not directly relate to a situation where expenses exceed revenues. Net income is the result when revenues exceed expenses.

When Expenses Exceed Revenues,the Result Is Called