BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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when total expenses for the period is equal to total income earned
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when total income earned is lesser than total expenses incurred
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when total expenses for the period is greater than beginning equity
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when there are no expenses for the period
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Detailed explanation-1: -A net loss occurs when the sum total of expenses exceeds the total income or revenue generated by a business, project, transaction, or investment. Businesses would report a net loss on the income statement, effectively as a negative net profit.
Detailed explanation-2: -In business, we say one makes a profit when the business makes money or experiences a return of investment (ROI). A business experiences a loss when it doesn’t make money on a product or service but loses part of more than what the owner initially invested.
Detailed explanation-3: -When income is less than expenses, you have a budget deficit.-too little cash to provide for your wants or needs. A budget deficit is not sustainable; it is not financially viable.
Detailed explanation-4: -The difference between the revenue and cost (found by subtracting the cost from the revenue) is called the profitThe difference between revenue and cost when revenue exceeds the cost incurred in operating the business..