BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If a business has a total income amounting to ₱47, 000.00 and total expenses amounting to ₱53, 000.00 for the month of January 2022, what will the business recognize for the month?
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a profit
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a loss
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an expense
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a withdrawal A loss will be recognized when total expenses are greater than total income.
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Explanation:
Detailed explanation-1: -Total Expenses = Net Revenue-Net Income.
Detailed explanation-2: -Revenue (sometimes referred to as sales revenue) is the amount of gross income produced through sales of products or services. A simple way to solve for revenue is by multiplying the number of sales and the sales price or average service price (Revenue = Sales x Average Price of Service or Sales Price).
Detailed explanation-3: -A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 2022, the federal government spent $6.27 trillion and collected $4.90 trillion in revenue, resulting in a deficit.
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